What is a potential limitation of a dual agency agreement?

A potential limitation of a dual agency agreement is the inability to fully represent the interests of both parties. In a dual agency situation, one agent represents both the buyer and the seller in a transaction. This can create a conflict of interest because the agent must balance the competing priorities and needs of both parties. Due to the nature of dual agency, the agent may not be able to advocate as strongly for either party's best interests, leading to potential dissatisfaction or feelings of inequity among the parties involved.

This limitation highlights a fundamental challenge within dual agency arrangements, as agents are tasked with ensuring that both sides achieve their goals while navigating the inherent conflicts that arise from representing opposing interests.