Final answer:
Dual agency is not allowed in real estate transactions, and Cindy should consider signing an exclusive buyer representation agreement. Consulting the listing agent directly is also an option for Cindy.
Step-by-step explanation:
If Cindy does not know if Craig represents the seller, it means that there might be a potential conflict of interest. This is why dual agency is not allowed in real estate transactions. Dual agency refers to a situation where the same real estate licensee represents both the buyer and the seller in a transaction, which can create a conflict of interest and compromise the licensee's ability to fully represent the best interests of either party.
In this scenario, Cindy should consider signing an exclusive buyer representation agreement. This agreement ensures that Cindy is represented by a licensee who is exclusively working for her best interests as the buyer. By signing such an agreement, Cindy can be assured that her interests are being protected throughout the home-buying process.
Craig, as the licensee showing the house, may or may not disclose his agency relationship. However, it is important for Cindy to be aware of the potential conflict of interest and to take measures to protect her own interests. Consulting the listing agent directly is one option for Cindy to ensure she understands the complete picture and to clarify any doubts or questions she may have.