Broker Susan at Coastal Realty in Rhode Island is approached by both seller Mark and buyer Nina, who want Susan to represent them both in the same transaction. Susan obtains written informed consent from Mark but only verbal consent from Nina before proceeding. Under Rhode Island law, which of the following best describes this situation?
Correct Answer
C) The dual agency is invalid because Rhode Island requires written informed consent from both the buyer and the seller
Under R.I. Gen. Laws § 5-20.6, dual agency in Rhode Island requires written informed consent from BOTH the buyer and the seller. Susan obtained only verbal consent from Nina (the buyer), which does not satisfy the statutory written consent requirement. The dual agency arrangement is therefore not lawfully established, exposing Susan to potential disciplinary action by the DBR.
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