What is single-license dual agency?

Single-license dual agency occurs when one licensee represents both the buyer and the seller in the same real estate transaction. This arrangement allows the agent to provide services to both parties, but it requires full disclosure and consent from both the buyer and the seller to ensure that they are aware of the potential conflicts of interest. In this scenario, the agent must navigate the responsibilities of representing two separate clients while maintaining impartiality and ensuring that both parties' interests are adequately protected.

The other options do not accurately define single-license dual agency. For instance, when two different agents represent the buyer and the seller, that would not involve a single licensee and therefore does not qualify as dual agency. A broker representing both parties refers more generically to a broker, which could involve multiple agents under the same brokerage rather than a single licensee. Lastly, an agent working independently without a brokerage does not relate to the concept of dual agency, as it doesn’t involve representing multiple parties in a transaction.

Understanding this concept is essential for ensuring compliance with ethical and legal obligations in real estate practices, particularly in Maryland.