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

The correct answer is legal with all parties consent. Under Nevada Revised Statutes § 645.252 and Nevada Administrative Code § 645.637, dual agency is legally permissible only when all parties to the transaction — both the buyer and the seller — provide their informed consent, typically in writing. This requirement ensures that both principals knowingly waive their right to undivided loyalty and agree to the agent representing both sides with the understanding that certain confidential information cannot be shared across the dual agency relationship. Without the consent of all parties, a Nevada licensee who acts as a dual agent commits a violation subject to license discipline.

What background knowledge is needed for this Agency question?

Dual agency as a legal concept became increasingly scrutinized in the 1980s and 1990s as consumer advocates argued that undisclosed dual agency was rampant in the industry and systematically disadvantaged buyers who assumed they had an agent working solely for them. States responded with a wave of agency disclosure legislation, and Nevada updated its real estate statutes to create a comprehensive agency framework requiring written disclosure of agency relationships at first substantive contact. The National Association of REALTORS® also revised its Code of Ethics to address dual agency disclosure, creating parallel professional and legal obligations. Nevada's current framework reflects the consensus approach among most U.S. states: dual agency is permitted but only with the transparency of full informed consent from every affected party.

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

Remember 'Nevada = ALL IN' for dual agency consent — just like a poker player going all in commits everything, dual agency in Nevada requires ALL parties to be fully committed and consenting before the game can proceed. Visualize a Nevada poker table where both the buyer and seller must each place their consent chip in the middle before the agent can deal the cards. The phrase 'Nevada needs EVERYONE's YES' will prevent you from selecting the one-party or broker-only consent options. Remember this acronym when encountering dual agency questions in Nevada. If you see 'dual agency' on the exam, quickly recall that Nevada requires ALL CONSENT from all parties involved.

What exam tip applies to this Agency question?

For dual agency questions on state-specific exams, the answer almost always involves 'all parties' consent unless the question is about a state that prohibits dual agency outright — when in doubt, 'all parties consent' is the safest answer for permitted dual agency states. Watch for distractors like 'broker consent' or 'one party consent,' which sound plausible but represent incomplete compliance with the legal standard. Nevada's NRS Chapter 645 is the controlling authority, and its emphasis on consumer protection through disclosure means that any answer short of full, informed, all-party consent will be legally insufficient.

How does this Agency concept apply in real world practice?

A Las Vegas listing agent has a signed listing agreement with a seller at $550,000. One of the agent's existing buyer clients tours the property and wants to make an offer. Before proceeding, the agent must stop and have a candid conversation with both the seller and the buyer, explaining that she currently represents both of them and cannot advocate fully for either side's price position. Both parties must sign a dual agency consent form acknowledging they understand the agent's divided loyalty before the agent can write the offer. If either party declines to consent, the agent must either refer the buyer to another agent or withdraw from representing one of the parties — the transaction cannot proceed with undisclosed dual agency.

AgencyAgency_types_and_creationMEDIUM

Under agency law in Nevada, dual agency is:

Correct Answer

D) legal with all parties consent

Permissible 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

Implied Agency

An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.

Material Fact Disclosure

The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.

Scope of Authority

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

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Agency Questions

Under agency law in Nevada, dual agency is:

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