Under Washington's Law of Real Estate Agency (RCW 18.86), a licensee acting as a dual agent with proper written consent from both parties retains all of the following duties to BOTH clients EXCEPT:
Correct Answer
A) The duty of undivided loyalty, advocating exclusively for each party's individual best interests against the other party.
Under RCW 18.86.060, when a licensee acts as a dual agent, the duty of undivided loyalty to each individual client is expressly modified — a dual agent cannot advocate exclusively for one party's best interests against the other, because doing so would inherently harm the other client. This is the one fiduciary-level duty that is specifically limited (not eliminated entirely, but significantly curtailed) in a dual agency relationship under Washington's statutory framework. The exam frequently tests this distinction: loyalty is the duty that changes; confidentiality, honesty, and accounting are preserved.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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