Dual Agency and Transaction Roles

The structural integrity of a real estate transaction relies on a delicate tension between distinct, opposing interests. The seller seeks the highest possible price; the buyer seeks the lowest; the lender seeks to mitigate risk while funding the purchase. When these roles remain independent, the system regulates itself. However, when a single professional attempts to represent the structural interests of both the property transfer and the financing mechanism, the foundational stability of the fiduciary relationship collapses. This collapse creates a profound legal and ethical paradox that New York State law meticulously regulates through precise disclosure requirements.