Which type of agency allows a real estate salesperson to represent both the buyer and the seller?

The concept of dual agency is essential to understanding how certain representation models work in real estate transactions. In dual agency, a real estate salesperson represents both the buyer and the seller in a single transaction. This arrangement can benefit both parties as the agent has a comprehensive understanding of the interests of both sides, potentially facilitating communication and negotiation.

It is critical for agents to fully disclose their dual agency status to both the buyer and the seller, as this ensures that all parties are aware of the agent's role and the possible conflicts of interest that may arise. Dual agency is subject to specific legal regulations in New York State, which aim to protect the interests of both the buyer and the seller.

In contrast, single agency only involves an agent representing one party, either the buyer or the seller, which limits the potential for conflicting interests. Designated agency, on the other hand, allows an agent to appoint another agent within the same brokerage to represent one party, thereby avoiding the conflicts associated with dual agency. Exclusive agency refers to a specific type of listing agreement and does not relate to the representation of both buyer and seller in a transaction.

Understanding dual agency is crucial for real estate professionals to navigate the complexities of representing clients effectively while adhering to legal and ethical standards in the industry