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?
Correct Answer
C) Informed written consent
Informed written consent is correct because the facts match the consent required in many jurisdictions before a licensee may lawfully act as a dual agent or in another conflict-prone capacity. That is the best description of the relationship, right, or legal concept tested here.
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In a jurisdiction that permits dual agency, what is the primary risk that informed written consent is designed to address?
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A brokerage assigns one agent to represent the seller and another agent in the same firm to represent the buyer. Both clients receive fiduciary representation from their own designated agent. What is this arrangement called?