What does a dual agency relationship mean in real estate?

In real estate, a dual agency relationship refers to a situation where a single agent or broker represents both the buyer and the seller in the same transaction. This means that the agent acts as an intermediary between the two parties involved, balancing their interests and facilitating the transaction.

Dual agency can create potential challenges, since the agent must navigate the conflicting interests of both the buyer and the seller. To maintain ethical standards and transparency, many states, including Kentucky, have specific laws and regulations governing dual agency. These regulations often require agents to disclose their dual agency status to both parties and obtain their consent, ensuring that all parties are aware of the agent's dual role.

Understanding the implications of dual agency is crucial for both real estate practitioners and consumers to ensure fair representation and compliance with state laws.