South Dakota law permits dual agency with written informed consent from all parties. Which of the following is NOT a required element for a valid dual agency consent under South Dakota law?
Correct Answer
C) A reduction in the broker's commission to compensate for the conflict of interest
South Dakota law does not require a reduction in the broker's commission as a condition of valid dual agency consent. The requirements for lawful dual agency under SDCL 36-21A are: written disclosure of the dual agency relationship, informed consent from all parties (both buyer and seller), and consent obtained before the dual agency is established. Commission amount is a matter of negotiation between the broker and the parties, not a statutory requirement for dual agency validity.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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