What must a real estate agent disclose to clients concerning dual agency?

In the context of dual agency, a real estate agent must disclose any potential conflicts of interest to clients. Dual agency occurs when the same agent or brokerage represents both the buyer and seller in a real estate transaction. This situation inherently creates a conflict of interest since the agent has a duty to act in the best interests of both parties, which can be challenging.

Disclosing potential conflicts of interest ensures that both the buyer and the seller are aware of the agent's position and can make informed decisions regarding the transaction. This transparency promotes trust and allows clients to assess whether they are comfortable proceeding under these circumstances. Proper disclosure aligns with ethical practices and legal requirements in Indiana’s real estate regulations, emphasizing the importance of clear communication in maintaining client relationships and safeguarding their interests.

The other options, while they may seem relevant in various contexts, do not pertain directly to the fundamental obligation of disclosing conflicts of interest in a dual agency situation. Therefore, the emphasis on potential conflicts of interest is paramount in maintaining ethical standards and ensuring informed consent from all parties involved.