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General Principles Of AgencyDual_agency_and_conflictsMEDIUM

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.

Answer Options
A
The risk that the agent will charge a higher commission
B
The risk that neither party will receive full, undivided loyalty from the agent
C
The risk that the property will not appraise at the contract price
D
The risk that the closing date will be delayed

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Key Terms:

dual_agency_and_conflictsagencydual_agencyloyalty_conflict
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