Final answer:
In a dual agency scenario within a real estate transaction, the broker is responsible for overseeing the agency relationship and ensuring that the interests of both the buyer and the seller are represented fairly.
Step-by-step explanation:
When an agent represents both the buyer and the seller in a real estate transaction, this situation is known as a dual agency. In this scenario, the broker is the party responsible for the agency relationship. It is the broker who employs the salespersons and oversees their work, ensuring they comply with all applicable real estate laws and the ethical standards of the industry. Therefore, in the case of a dual agency, it is the broker who manages the dual representation and must ensure that the interests of both the buyer and the seller are adequately served. It is important to note that dual agency can raise concerns about imperfect information and asymmetric information, as the agent must navigate the transaction with confidentiality and fairness to both parties involved.