Tennessee Realtor State Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

When an agent acts as a dual agent, they simultaneously represent both the buyer and the seller in the same transaction. This role requires the agent to navigate the interests of both parties fairly, as they have an obligation to maintain confidentiality and provide unbiased information. Dual agency can create potential conflicts of interest, which is why many states have specific regulations regarding the practice. An agent in this position must be transparent with both parties about their role and ensure that each party is aware of the arrangement, as effective communication is vital to maintaining trust throughout the transaction.

The other options indicate differing roles that do not align with the concept of dual agency, such as representing one party in multiple transactions or working individually for each party, which do not encompass the dual representation aspect. Additionally, acting merely as a facilitator lacks the inherent representation that defines a dual agent's responsibilities.