California Real Estate Practice Exam

Which scenario would not be considered dual agency?

1. A broker representing the buyer and the seller in the same transaction

2. A broker acting for two sellers competing for the same buyer

3. A broker representing two different buyers interested in the same property

4. A broker buying a listed property for themselves

The correct answer is: A broker representing two different buyers interested in the same property

A broker representing two different buyers interested in the same property does not constitute dual agency because dual agency specifically involves the representation of both parties in a single transaction. In this scenario, the broker is acting for two buyers who are interested in purchasing the same property, but they are not representing both sides in the same transaction. Instead, the broker is essentially working on behalf of two different clients without being in a position where they must balance the interests of both the buyer and the seller. In contrast, dual agency occurs when a broker represents both the buyer and the seller in the same transaction, which can lead to conflicts of interest. In the other scenarios provided, the broker is either representing both the seller and the buyer or selling for one party while competing against another, thus creating a dual agency situation. Therefore, the situation where a broker represents two different buyers for the same property stands apart as it does not involve representing both sides in the same transaction.