What is the role of a dual agent in real estate transactions?

The role of a dual agent in real estate transactions is to represent both the seller and the buyer. This unique position arises when a single real estate agent or brokerage represents both parties in a transaction, effectively acting as an intermediary. The dual agent has a responsibility to navigate the interests of both parties, balancing the need for confidentiality regarding each side's motivations and offers. This arrangement is particularly advantageous in situations where the buyer and seller are already acquainted or if the property is highly desirable, allowing for streamlined communication and potentially quicker transactions.

However, the role of a dual agent comes with a set of challenges. For instance, the agent must ensure that they uphold the fiduciary responsibilities to both sides without favoring one over the other. This can be particularly tricky, as each party typically has different goals and needs, which requires the agent to maintain neutrality and transparency throughout the process. Despite the potential for conflicts of interest, dual agency is a legal practice in many areas, including Minnesota, provided that all parties involved give informed consent to this arrangement.

In contrast, the other options outline roles that pertain specifically to representing one party in a transaction. Representing only the buyer or only the seller involves a single focus and allegiance, while acting as a mediator implies neutrality without