In terms of Michigan real estate law, what does "dual agency" refer to?

In Michigan real estate law, "dual agency" specifically refers to the situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction. This arrangement can lead to a potential conflict of interest, as the agent has a duty to act in the best interests of both parties. However, full disclosure must be offered to both the buyer and the seller, ensuring they are aware of the dual agency relationship. It is important for agents to navigate this situation carefully to maintain ethical standards and comply with legal requirements, including obtaining informed consent from both parties.

Choices representing only working for the buyer or the seller indicate a single agency relationship, which does not encompass the dual representation aspect. Independent representation suggests that agents operate separately, which again does not reflect the nature of dual agency. Thus, the essence of the correct choice lies in its acknowledgment of the unique dynamics introduced by representing both sides in a transaction.