New York State Real Estate Salesperson Licensing Practice Exam

The scenario in which a dual agency occurs is when a broker represents both the buyer and the seller of the same property. In this situation, the broker must navigate the interests of both parties, which can create potential conflicts of interest. The broker has a fiduciary duty to both the buyer and the seller, meaning they must act in the best interest of each while remaining fair and impartial.

Dual agency is regulated in many states, including New York, where specific disclosures are required to inform both parties of the agency relationship and the implications it poses. This ensures that both the buyer and seller understand that the broker is not exclusively representing either side and must balance their responsibilities accordingly.

Other scenarios, such as when one agent represents a buyer only or when two separate agents represent the buyer and seller, do not qualify as dual agency since there is no representation conflict involved. Additionally, if the buyer does not have a representative, it does not involve dual agency but rather indicates that they are navigating the transaction without an agent, which does not create a dual representation situation.