In the scenario where Broker A represents both buyer and seller, what potential issue could arise?

When Broker A represents both the buyer and the seller in a real estate transaction, this situation is classified as dual agency. Dual agency occurs when a real estate agent or broker acts on behalf of both parties in a transaction, which can lead to a conflict of interest. The agent must navigate the interests of both the buyer and seller, often having to balance the different goals of each party.

In California, dual agency is legal, but it comes with specific disclosure requirements. Both the buyer and the seller must be informed of the dual agency relationship and consent to it. This ensures that both parties are fully aware of the potential conflicts and the broker's limitations in fully advocating for either side.

Other terms like disclosed agency refer to situations where the relationship is clear and communicated to all involved but doesn’t necessarily denote representation of both parties. Single agency would indicate that the broker represents only one party in the transaction, eliminating any potential for conflicting interests. Implied agency generally arises from the actions of the parties rather than explicit agreement, which is different from a dual agency scenario that explicitly involves the representation of both parties.