Licensee Paul is working as a disclosed dual agent in a transaction where he represents both the seller, Grace, and the buyer, Henry. Under New Jersey law, which of the following disclosures is Paul specifically required to make in writing before the dual agency relationship can proceed?
Correct Answer
B) Written informed consent to the dual agency relationship obtained from both Grace and Henry
Under New Jersey law and N.J.A.C. 11:5-6.9, a licensee may act as a disclosed dual agent only after obtaining the written informed consent of both parties—the seller and the buyer—to the dual agency arrangement. This consent must be obtained before the dual agency relationship is established, ensuring both parties knowingly agree to the licensee representing both sides of the transaction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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