What is the correct answer to: Under agency law in Connecticut dual agency is:

The correct answer is Legal with all parties consent. Connecticut General Statutes § 20-325g and related regulations permit dual agency, but only when all parties to the transaction — both buyer and seller — provide their informed written consent after receiving full disclosure of the nature and implications of the dual agency relationship. This 'all parties consent' standard ensures that no party is surprised to learn their agent also represents the opposing side. The consent must typically be obtained before the dual agency situation arises, often documented in the agency disclosure form.

What background knowledge is needed for this Agency question?

Connecticut codified its dual agency disclosure requirements as part of broader real estate agency reform legislation in the 1990s, a period when states across the country were grappling with the widespread but often undisclosed practice of subagency — where buyers mistakenly believed listing agents represented them. Connecticut's legislature determined that dual agency could be acceptable if consumers were fully informed, leading to the all-parties-consent framework. This approach aligned Connecticut with the majority of states that chose informed consent over outright prohibition. The law has been refined over the years to specify exactly when and how disclosure must be made.

What is a good way to remember the answer to this Agency question?

Think of dual agency consent as a 'double handshake' — both hands (both parties) must shake before the deal can proceed. In Connecticut, it takes TWO to agree to dual agency, just as it takes two people to shake hands. If only one party agrees, there's no handshake — and no legal dual agency. When you see 'dual agency' and 'Connecticut' on the exam, think 'ALL CONSENT' to remember that all parties must consent.

What exam tip applies to this Agency question?

When a question asks about the legality of dual agency, the answer almost never involves complete illegality unless the question specifies a state known for banning it — instead, look for the consent-based answer. In Connecticut specifically, 'all parties consent' is the operative phrase, so eliminate any option that limits consent to only one party or to the broker alone.

How does this Agency concept apply in real world practice?

A Connecticut buyer falls in love with a home listed by the same brokerage that has been helping her search for properties. Before proceeding, her agent must sit down with both her and the seller, explain that the brokerage now represents both sides, outline the limitations this places on the agent's ability to advocate exclusively for either party, and obtain signed written consent from both the buyer and the seller. Only after both parties sign the dual agency consent form can the transaction move forward with the same brokerage representing both sides.

AgencyGeneralMEDIUM

Under agency law in Connecticut dual agency is:

Correct Answer

D) Legal with all parties consent

Connecticut law permits dual agency with all parties' consent.

Answer Options

Illegal

Legal with one party consent

Legal with broker consent

Legal with all parties consent

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Related Concepts

Vicarious Liability

The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.

Agency by Estoppel

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.

Agency by Ratification

An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.

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Under agency law in Connecticut dual agency is:

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