Texas Real Estate State Practice Exam 2025 - Free Real Estate License Practice Questions and Study Guide

In real estate, "dual agency" refers to the situation where a single agent represents both the buyer and the seller in a transaction. This arrangement can occur when the same brokerage has the listing for a property and also has a buyer interested in that property. In this case, the agent must navigate the interests of both parties, which can be challenging due to the potential for conflicts of interest.

For dual agency to be permissible, both parties must provide informed consent, often through a disclosure form. This is important because it protects the rights of both the buyer and the seller, ensuring that they are aware of the dual representation and its implications.

The other options present different concepts. One describes a single agent representing only one party, which is the opposite of dual agency. Another suggests that dual agency is a legal requirement for selling property in Texas, which is inaccurate; rather, it is a practice that must be disclosed and agreed upon. Lastly, the option mentioning a negotiation method does not specifically define dual agency and tends to focus more on general negotiating strategies rather than the unique aspect of dual representation in real estate transactions.