In Alberta, what is required when a real estate professional represents both buyer and seller in the same transaction?

Q: What is the correct answer to: In Alberta, what is required when a real estate professional represents both buyer and seller in the same transaction?

The correct answer is Written consent from both parties and limited dual agency disclosure. Option A is correct because Alberta's Real Estate Act and RECA regulations specifically permit limited dual agency when proper procedures are followed. The legislation requires written informed consent from both parties, not just verbal agreement. Additionally, the agent must provide comprehensive disclosure about the limitations of dual representation, explaining that they cannot advocate exclusively for either party's interests. This written documentation protects both the licensee and the clients by ensuring everyone understands the arrangement's constraints and potential conflicts of interest.

Q: What background knowledge is needed for this Agency & Professional Ethics question?

Limited dual agency in Alberta is governed by the Real Estate Act and RECA regulations. This arrangement allows one licensee to represent both buyer and seller in the same transaction, but with significant limitations. The agent cannot advocate exclusively for either party and must maintain neutrality throughout the transaction. Written informed consent is mandatory, and the disclosure must explain the limitations of representation, potential conflicts of interest, and the agent's inability to provide undivided loyalty to either party. This differs from designated agency, where different agents within the same brokerage represent each party.

Q: What is a good way to remember the answer to this Agency & Professional Ethics question?

Remember DUAL for Alberta dual agency: D - Disclosure must be comprehensive, U - Understanding confirmed in writing, A - Agreement from both parties required, L - Limitations of representation explained. Think of it as a 'dual signature' requirement - both parties must sign written consent after full disclosure. When you see dual agency questions, run through the DUAL checklist. If the question mentions verbal only (missing U), RECA approval (not required), or prohibition (ignoring the DUAL framework), eliminate those options. Look for the choice that includes both written consent and proper disclosure.

Q: What exam tip applies to this Agency & Professional Ethics question?

For Alberta dual agency questions, always look for 'written consent' and 'disclosure' together. Eliminate options mentioning verbal agreements, pre-approval requirements, or outright prohibition. Alberta permits dual agency but requires documented informed consent.

Q: How does this Agency & Professional Ethics concept apply in real world practice?

Sarah, a real estate agent in Calgary, has a listing for a $500,000 home. Her buyer client becomes interested in this property. Before proceeding, Sarah must provide written disclosure explaining that she cannot advocate exclusively for either party, cannot share confidential information between parties, and has limitations in negotiating strategy. Both the seller and buyer must sign written consent acknowledging these limitations. Only after obtaining these signatures can Sarah proceed with the dual agency arrangement, maintaining strict neutrality throughout negotiations.

Question

Agency & Professional EthicsDual AgencyABMEDIUM

In Alberta, what is required when a real estate professional represents both buyer and seller in the same transaction?

Answer Options

A

Written consent from both parties and limited dual agency disclosure

B

Verbal agreement from both parties

C

RECA approval before proceeding

D

Dual agency is prohibited in Alberta