What happens if a broker acts as an intermediary in a dual agency situation?

When a broker acts as an intermediary in a dual agency situation, the broker must act on behalf of both parties' interests equally. In a dual agency scenario, where the broker represents both the buyer and the seller, the broker has a legal obligation to serve the interests of both clients impartially. This means providing fair treatment and ensuring that neither client is favored over the other. It is crucial for maintaining trust and fairness in the transaction, as both parties rely on the broker to facilitate their agreement while balancing the competing interests.

The requirement for equal representation underscores the importance of transparency and ethical practices in real estate transactions, particularly when both parties are relying on the same broker for guidance and assistance. Effective communication is essential to ensure that both clients understand their positioning and that the broker is not favoring one client’s interests over the other, which could lead to issues of trust and potential legal ramifications.

While the other choices touch on relevant aspects of a broker's obligations, they do not address the primary role of ensuring equal representation during dual agency, which is fundamental for compliance with agency laws and best practices in the field.