What is dual agency in a real estate transaction?

Dual agency in a real estate transaction is a situation where a real estate agent represents both the buyer and seller in a transaction. This occurs when an agent works for a real estate firm that represents both the buyer and seller. In this situation, the agent must be impartial and act in the best interest of both the buyer and seller. Dual agency is illegal in some states, including Alaska. In Alaska, real estate agents are prohibited from acting as a dual agent in a real estate transaction. This means an agent is either representing the buyer or the seller, but not both. In order to avoid conflicts of interest, agents working in dual agency transactions must explain to both parties that they are acting as an impartial third party in the transaction and provide both parties with equal access to information. The agent is also required to disclose any potential advantages or disadvantages to either side. In Alaska, real estate transactions involving dual agency require the buyer and seller to sign a disclosure form that outlines the requirements of dual agency and what they can expect from their agent. This form helps to protect both the buyer and seller from the potential conflicts of interest that can arise in a dual agency transaction.

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