What does "dual agency" in Georgia real estate practice refer to?

Dual agency in Georgia real estate practice refers to a situation where a single broker represents both the buyer and the seller involved in the same transaction. This arrangement can arise when a broker has an agreement with both parties and facilitates the sale of a property while navigating the interests of both sides.

In dual agency, the broker must be vigilant about maintaining a level of impartiality and fairness, as they have a fiduciary responsibility to both clients. This means the broker needs to disclose their position and ensure that both parties are informed about the implications of this relationship. The ability to act as a dual agent can provide a streamlined process, since communication and negotiations occur through one representative rather than two.

This concept is important within Georgia law, as dual agency can lead to potential conflicts of interest, which is why it's heavily regulated. Brokers must obtain written consent from both parties to legally act in this capacity. Understanding dual agency is critical for anyone involved in real estate transactions in Georgia, as it shapes how agents can operate and the obligations they have to their clients.