Ace the Hawaii Pre-Licensing Exam 2025 – Surf Your Way to Real Estate Success!

In real estate, a dual agency relationship occurs when a single agent represents both the buyer and the seller in the same transaction. This arrangement can arise when a real estate agent or broker has the listing for a property while also working with a buyer who wants to purchase that property.

The significance of dual agency lies in its potential for conflicts of interest. Since the agent has a fiduciary duty to both parties, they must be careful to remain neutral and ensure that both the buyer and seller receive fair treatment. Disclosure of the dual agency relationship is essential, and both parties must consent to this arrangement.

This contrasts with other agency types: exclusive agency refers to a situation where an agent has the exclusive right to represent a client, but only for one party at a time. Open agency implies that the agent may represent multiple clients simultaneously, but not necessarily in the same transaction. Single agency signifies a relationship where an agent represents exclusively one party, either the buyer or the seller, avoiding any conflicts that could arise from dual representation.