Final Answer:
Dual agency shall mean that an agent represents both parties involved in a real estate transaction, provided there is informed consent from both parties and a written understanding detailing specific duties and representation for each party.
Step-by-step explanation:
Dual agency, denoted as DA, in real estate occurs when a single agent or brokerage represents both the buyer and seller in a transaction. This arrangement demands explicit consent and a comprehensive written agreement, delineating the agent's responsibilities to each party involved. The equation for dual agency is represented as DA = (IC × WD), where IC stands for Informed Consent and WD represents the Written Understanding. The successful implementation of DA requires both informed consent and a clear understanding in writing of the agent's duties towards each party, amplifying the significance of both factors in the equation.
Moreover, the concept of dual agency underscores the importance of transparency and disclosure. Agents acting in a dual capacity must navigate potential conflicts of interest while providing fair and equitable representation to both parties. This duality is symbolized as T + D = Ethical Representation, where T signifies Transparency and D represents Disclosure. The equation implies that ethical representation in dual agency is achieved through a combination of transparency and full disclosure of potential conflicts, ensuring a balanced and fair transaction for both parties involved.
Additionally, the complexity of dual agency necessitates meticulous attention to detail and a clear delineation of responsibilities. Each party involved must be fully informed about the agent's role and obligations to avoid misunderstandings or conflicts during the transaction process. This requirement can be expressed as P + O = Clarity, where P denotes Party Awareness and O represents Obligations Defined. Clarity is achieved when both parties are fully aware of the agent's role and responsibilities, facilitating a smoother and more transparent real estate transaction under a dual agency arrangement.