What can lead a broker to a dual agency scenario?

A dual agency scenario arises when a broker simultaneously represents both the buyer and the seller in a real estate transaction. This situation can occur when a broker handles transactions for both parties, which can create potential conflicts of interest. It is crucial for brokers to disclose this relationship to both clients and obtain their consent, as dual agency can complicate the fiduciary duties owed to each client.

In contrast, solely representing one side of a transaction keeps the broker in a single agency scenario, where their loyalty is directed entirely toward one client. Additionally, working with buyers who are also sellers does not inherently create dual agency unless the broker represents them in the same transaction. Using one marketing strategy for all listings does not relate to agency relationships but instead focuses on marketing practices. Therefore, handling transactions for both the buyer and the seller is the clear factor that leads to a dual agency situation.