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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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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A listing agreement creates an agency relationship between:
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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?