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

The correct answer is legal with all parties written consent. Oregon Revised Statutes §696.845 permits dual agency in real estate transactions but requires that all principals — meaning both the buyer and the seller — provide written consent after full disclosure of the dual agency relationship. The written consent requirement is non-negotiable under Oregon law; verbal consent or the consent of only one party is legally insufficient to create a valid dual agency arrangement. This protects consumers by ensuring they make an informed choice to waive their right to undivided loyalty before the agency relationship begins.

What background knowledge is needed for this Agency question?

Dual agency has been a contested area of real estate law since the professionalization of brokerage in the early 20th century, when it became common for a single office to represent both buyers and sellers in the same market. Early common law held that undisclosed dual agency was a breach of fiduciary duty that could void a transaction entirely. States began codifying dual agency disclosure requirements in the 1980s and 1990s as part of broader agency reform legislation, with Oregon's requirements reflecting the consensus that transparency and informed consent are the appropriate safeguards. Some states, recognizing the inherent conflict, have moved toward 'transaction brokerage' or 'facilitation' models that eliminate fiduciary duties entirely, but Oregon retains traditional dual agency with robust consent requirements.

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

Remember 'DUAL = Double Unanimous Agreement in writing (for) All parties.' The word 'dual' itself reminds you that two parties are involved, and both must sign. Visualize two people — a buyer and a seller — each holding a pen and signing the same document simultaneously before the dual agent can proceed. If only one pen is moving, the dual agency is not yet legal. Remember that for dual agency in Oregon, you need All parties' Written Consent before proceeding.

What exam tip applies to this Agency question?

Oregon exam questions on dual agency are specifically designed to test whether you know that written consent from ALL parties is required — not just one party, not just verbal consent, and not just the broker's decision. When you see answer options that limit consent to one party or allow verbal consent, eliminate them immediately. The phrase 'all parties written consent' is the only legally correct formulation under ORS §696.845.

How does this Agency concept apply in real world practice?

A buyer named David is working with broker Elena in Eugene, Oregon, when he falls in love with a listing that Elena also represents as the seller's agent. Before Elena can continue representing both parties, she must stop the process, provide both David and the seller with a written dual agency disclosure explaining exactly what rights each party is waiving, and obtain the written signature of both parties confirming their consent. Only after both signatures are secured can Elena proceed as a dual agent — and even then, she must carefully avoid sharing confidential information from either party, such as the seller's minimum acceptable price or the buyer's maximum budget.

AgencyGeneralMEDIUM

Under agency law in Oregon, dual agency is:

Correct Answer

D) legal with all parties written consent

Requires written consent of all principals.

Answer Options

illegal

legal with one party consent

legal with broker consent

legal with all parties written consent

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Fiduciary Duty

The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.

Gratuitous Agency

An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.

Implied Agency

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

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Under agency law in Oregon, dual agency is:

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