Define the term 'dual agency'.

Dual agency refers to a situation in real estate where one agent represents both the buyer and the seller in the same transaction. This can occur when a real estate professional has an agreement with both parties, making them responsible for representing the interests of both the buyer and seller simultaneously.

Having a single agent in this role can streamline communication and negotiation, but it does come with the need for full disclosure and careful management of potential conflicts of interest. The agent must remain neutral, providing guidance without favoring one party over the other, which can be a complex balancing act.

In contrast, other choices define different scenarios within real estate transactions. For instance, representing only one party or having multiple agents working for different sellers or buyers does not fit the definition of dual agency, as they do not involve a single agent taking on the responsibilities for both sides in the same transaction. Thus, the defining characteristic of dual agency is the unique role of one agent managing the interests of both the buyer and seller concurrently.