Define "dual agency" in real estate transactions.

Dual agency occurs when one real estate agent or broker represents both the buyer and the seller in a transaction. This situation can arise in various scenarios, such as when a buyer is interested in a property listed by the same agent representing them. In this arrangement, the agent has to navigate conflicting interests, as they must advocate for both parties while adhering to their fiduciary duties.

This arrangement can be legally permissible in many jurisdictions, often requiring informed consent from both the buyer and the seller. It's important to understand the implications of dual agency, as it limits the agent's ability to fully advocate for one side over the other due to the inherent conflicts of interest.

The other choices describe different representations or agency relationships. For instance, representing only the buyer or a situation with two agents representing a single buyer does not illustrate dual agency. Additionally, representing a buyer and seller separately implies that the interests of both parties are addressed by different agents, which negates the concept of dual agency.