In South Dakota, which term describes the agency relationship in which a single broker represents both the buyer and the seller in the same real estate transaction?
Correct Answer
A) Dual agency
Dual agency occurs when one broker represents both the buyer and the seller in the same transaction. Under South Dakota law (SDCL 36-21A), dual agency is permitted but requires written informed consent from all parties before it can be established. The broker must disclose the dual agency relationship and obtain that written consent.
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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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