What type of authority does a principal broker have in a dual agency situation?

In a dual agency situation, the principal broker has full authority to represent both parties involved in a real estate transaction, typically the buyer and the seller. This role allows the broker to facilitate negotiations, communicate offers, and manage contract details between both clients.

While acting in dual agency, the principal broker must maintain a balance, ensuring that the interests of both parties are represented fairly. This capability is crucial because it helps ensure a smooth transaction process when representing clients with potentially conflicting interests.

The other types of authority mentioned do not accurately reflect the scope of a principal broker’s role in a dual agency. Limited authority would imply restrictions on certain aspects of representation, which is not the case here; no authority would mean that the broker could not act on behalf of either party, contradicting the definition of dual agency; advisory authority would suggest that the broker only provides guidance without taking actionable steps, which does not align with the responsibilities undertaken in a dual agency framework. Thus, the correct choice highlights the comprehensive role that a principal broker plays in this specific scenario.