Which of the following best describes dual agency in real estate?

Dual agency in real estate occurs when a single agent represents both the buyer and the seller in the same transaction. This situation can create a complex dynamic because the agent must navigate their responsibilities to both parties, balancing the interests and needs of each. It is important for the agent to disclose this arrangement to both parties and obtain their consent, as it can raise potential conflicts of interest.

In contrast, the other options do not accurately define dual agency. Collaborating agents from different brokerages is not considered dual agency, as each agent still represents their respective client independently. Similarly, representing one party while merely offering advice to the other does not encompass the full role of dual agency, which entails formally representing both parties in the transaction. Lastly, a brokerage handling multiple transactions simultaneously does not capture the essence of dual agency, since the focus is on representing both the buyer and seller by one agent, rather than the number of transactions being managed.