A Delaware purchase agreement for a residential property includes a dual agency clause. The listing broker represents both the seller and the buyer in the same transaction. Under Delaware law, what is required for this arrangement to be valid?
Correct Answer
B) Written informed consent from all parties to the transaction
Under the Delaware Agency Relationships in Real Estate Transactions Act (24 Del. C. § 2973), disclosed dual agency is permissible in Delaware only with the informed written consent of all parties — both the buyer and the seller. This written consent must be obtained before the dual agency relationship is established, ensuring all parties understand the limitations on the broker's fiduciary duties.
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Related Topics & Key Terms
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Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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