Which type of agency relationship involves representing both the buyer and seller in the same transaction?

Dual agency occurs when a real estate agent represents both the buyer and the seller in the same transaction. This situation typically arises when a broker is able to facilitate a sale where one of their clients is the seller and another client is the buyer. In a dual agency arrangement, the agent must navigate the interests of both parties, ensuring that neither party is disadvantaged while maintaining confidentiality and fair representation.

The relationship is legal in many jurisdictions, including Illinois, but it requires full disclosure to both parties so they understand the implications. They must consent to this arrangement, as it can present challenges with loyalty and advocacy for each party's best interests.

Understanding dual agency is crucial for real estate professionals, as it opens up additional ethical responsibilities and considerations regarding how to manage the expectations and rights of both clients during the transaction process. The other types of agency listed do not involve representing both parties simultaneously, thus they don't fit the scenario posed in the question. For example, exclusive agency involves one party being represented, while designated agency and single agency refer to representing only one client.