Ace the Michigan Real Estate Salesperson Exam 2025 – Dominate the 3-Hour PSI Challenge!

Dual agency is defined as a situation in which a single real estate agent represents both the buyer and the seller in the same transaction. This scenario can occur when a buyer is interested in purchasing a property that is listed by the same agent representing them, creating a unique dynamic. In a dual agency arrangement, the agent must navigate the interests of both parties, ensuring that confidentiality and loyalty are maintained while also facilitating the transaction effectively. This arrangement requires full disclosure to both parties and typically necessitates informed consent, as it can lead to conflicts of interest.

The other options do not capture the essence of dual agency. For instance, representing two agents for one client or different clients in separate transactions does not denote dual agency, as it involves distinct relationships rather than a single agent managing both sides of a transaction. Having a personal interest in the property does not characterize dual agency either; it simply refers to a potential conflict of interest but does not define the relationship of representation in real estate transactions.