Dual agency occurs when:
Question & Answer
Review the question and all answer choices
Two agents work in the same office
Option A is incorrect because two agents working in the same office does not constitute dual agency. This is simply co-agency or working in the same brokerage. Dual agency requires representation of both buyer and seller by the same agent or brokerage.
One agent represents both buyer and seller
The agent has two listings
Option C is incorrect because having two listings means the agent represents two different sellers, not a buyer and seller. This is not dual agency but rather multiple representation of sellers, which may create other conflicts but is not the same as dual agency.
The buyer uses two agents
Option D is incorrect because a buyer using two agents is not dual agency. This is simply buyer agency shopping or using multiple agents to find properties, which doesn't create the conflict inherent in dual agency.
Why is this correct?
Option B is correct because dual agency specifically occurs when one agent or brokerage represents both the buyer and seller in the same transaction. This creates a fundamental conflict of interest where the agent cannot fully represent either party's best interests simultaneously.
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