If a buyer's broker represents two buyers interested in the same property, what situation does this create?

When a buyer's broker represents two buyers who are interested in the same property, this situation introduces the possibility of dual agency. Dual agency occurs when a broker represents both the buyer and the seller in a transaction. While in this case the buyers are competing for the same property, the broker's involvement with both parties can lead to a conflict of loyalty and an obligation to act in the best interest of both clients simultaneously.

It is crucial for the broker to navigate this situation carefully. If the broker wishes to proceed with representing both buyers, they must disclose this dual representation to both parties and obtain their consent. This ensures transparency and helps to manage the potential conflicts that could arise from having to balance the interests of two buyers vying for the same property.

While this scenario might also pose ethical considerations and could be seen as a conflict of interest or raise questions regarding legality, the primary issue here is the emergence of dual agency, which requires careful management and disclosure to ensure compliance with real estate laws and safeguard the interests of all parties involved.