Which statement best reflects the concept of dual agency?

Dual agency occurs when a single real estate agent or brokerage represents both the buyer and the seller in a transaction. This scenario creates a situation where the agent works on behalf of two parties who have potentially conflicting interests. The correct statement emphasizes that one agent is acting for both parties, thus highlighting the dual nature of the agency relationship.

In dual agency, it is important for the agent to navigate this relationship carefully to ensure that both the buyer and seller are treated fairly and that their respective interests are adequately protected. This arrangement typically requires full disclosure to both parties and often comes with specific legal obligations to maintain neutrality, as the agent cannot fully advocate for one side without compromising the interests of the other.

The other options highlight different arrangements that do not align with the definition of dual agency. For instance, having both the buyer and seller represented by different brokers suggests separate representation, not dual agency. Similarly, the idea that a buyer's agent can also work for the seller suggests a conflict of interest rather than a true dual agency. Lastly, stating that only one party can have representation contradicts the fundamental concept of dual agency, where both parties are represented—albeit by the same agent.