Agent Denise represents the buyer, and her broker also holds the listing for the same property. Denise's broker wants to proceed with the transaction. Under Louisiana law, what must occur before this dual agency arrangement can be considered lawful?
Correct Answer
B) Both the buyer and the seller must provide written informed consent to the dual agency relationship.
Louisiana law and LREC regulations require that both the buyer and the seller provide written informed consent before a dual agency relationship can be lawfully established. This written consent must be obtained prior to the agent acting in the dual capacity. Both parties must understand the limitations on the agent's fiduciary duties that result from dual representation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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