Texas Real Estate State Practice Exam

How is Dual Agency in real estate commonly described?

1. Two properties for sale

2. Both buyer and seller represented by one agent

3. Selling two properties simultaneously

4. Joint ownership of a property

The correct answer is: Both buyer and seller represented by one agent

Dual agency in real estate is best described as a situation where both the buyer and the seller are represented by the same agent. This arrangement can arise when a real estate agent represents both parties in a transaction, which allows for streamlined communication and potentially smoother negotiation. However, it also presents unique challenges, particularly when it comes to maintaining confidentiality and managing any conflicts of interest, since the agent must balance the interests of both the buyer and the seller. The other choices do not accurately reflect the concept of dual agency. Describing two properties for sale does not encompass the dual representation aspect of agency. Selling two properties simultaneously is unrelated to how an agent represents clients in a real estate transaction. Joint ownership of a property pertains to how ownership rights are structured rather than to the representation of clients in a transaction context. Therefore, option B captures the essence of dual agency effectively.