Oregon 30-Hour Real Estate Law Practice Test

What role does a dual agent have in a transaction?

1. A single representation of one party

2. Encouraging a decision towards either buyer or seller

3. Representing both parties equally

4. Only facilitating the transaction

The correct answer is: Representing both parties equally

A dual agent plays a unique role in a real estate transaction by representing both the buyer and the seller simultaneously. This arrangement requires the agent to maintain a balanced and neutral stance, ensuring that both parties are treated fairly and equitably throughout the process. The key aspect of dual agency is that the agent must avoid showing favoritism or bias towards one side over the other, which can sometimes be challenging due to the differing interests of the two parties involved. In a dual agency situation, communication between both parties is critical, and the agent must navigate potential conflicts of interest while honoring their fiduciary duties to both clients. It is essential for the dual agent to disclose their status as such to both parties and obtain informed consent, as this transparency helps to maintain trust and accountability. The other options describe roles that do not align with the dual agent's responsibilities. For instance, single representation only refers to representing one party, while encouraging a decision towards either buyer or seller suggests bias or influence, which contradicts the neutrality required in dual agency. Lastly, the notion of merely facilitating the transaction overlooks the dual agent's responsibility to advocate for the interests of both clients, further emphasizing the unique role they play in managing this delicate balance.