In a jurisdiction that permits dual agency, what is the primary risk that informed written consent is designed to address?
Correct Answer
B) The risk that neither party will receive full, undivided loyalty from the agent
The core risk of dual agency is that the agent cannot give undivided loyalty to either party when representing both sides. Informed consent ensures parties understand this limitation.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This General Principles Of Agency Question
Background Knowledge for General Principles Of Agency
Real World Application in General Principles Of Agency
Common Mistakes to Avoid on General Principles Of Agency Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
More General Principles Of Agency Questions
A listing agreement creates an agency relationship between:
A property management agreement between an owner and a property manager typically specifies which of the following?
What is 'designated agency' in the context of a real estate brokerage?
A real estate team receives a referral from a past client. The team leader assigns the referral to a team member. The team member shows the buyer several properties. Who is the buyer's agent?
A buyer's agent compensation can be structured as:
- → A commercial tenant is negotiating a five-year lease for retail space. The tenant hires a tenant representative broker to negotiate lease terms on the tenant's behalf. What agency relationship exists between the tenant and the tenant representative?
- → A property manager signs a lease on behalf of the property owner. The management agreement authorizes the manager to execute leases for terms up to one year. The manager signs a three-year lease with a commercial tenant. What is the likely consequence?
- → A property manager discovers that a rental unit has a significant mold problem. The manager repairs the visible mold but does not inform the property owner about the extent of the damage or the potential liability. Has the property manager violated any agency duty?
- → A listing agent tells prospective buyers that the home sits on 'the finest street in the whole county' and is 'a once-in-a-lifetime opportunity.' These statements are best characterized as:
- → Real estate commissions are typically based on:
- → Under the new rules, how can a buyer's agent be compensated?
- → Casey Patel is hired only to find a ready, willing, and able buyer for Morgan Flores's duplex and has no authority over Morgan's other affairs. Classified by the scope of authority granted, what type of agent is Casey?
- → Casey Patel asks a licensee to unlock homes and write up an offer but refuses to sign any representation agreement. What is Casey's usual status relative to that brokerage?
- → All of the following must generally be disclosed to prospective buyers EXCEPT
- → Grace Rivera gives Natalie Perry an earnest money check, and Natalie Perry promptly deposits it in the proper trust account and keeps accurate records. Which fiduciary duty is this?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Previous Question
Jamie Cruz signs a listing agreement with broker Skyler Simmons. What role does Simmons's brokerage hold in the resulting sale?
Next Question
A broker wants to represent both parties in the same transaction where the law allows that practice only with full disclosure and consent. What must the broker obtain first?