Which situation requires a dual agency disclosure?

In the case where a salesperson in a branch office represents the buyer while an associate broker in the same company represents the seller, a dual agency disclosure is required. This is because both parties in the transaction—buyer and seller—are being represented by agents from the same brokerage firm, creating a situation where the firm is acting as a dual agent.

Dual agency occurs when a single brokerage is involved in representing both sides of a transaction. In Arizona, this situation necessitates full disclosure to all parties involved because the broker has a legal obligation to act in the best interests of both the buyer and the seller. This can create potential conflicts of interest, as the broker must navigate the differing interests of each client. Hence, it's crucial for both the buyer and the seller to be informed about the dual agency relationship and to provide their consent.

In contrast, situations such as being a relative of the buyer or seller, or representing clients across different brokerage firms, do not inherently create dual agency. The former may involve personal biases while the latter indicates separate representation, thus not necessitating the same degree of disclosure.