In what situation is a broker legally allowed to operate under dual agency?

A broker is legally allowed to operate under dual agency only with written consent from both parties involved in the transaction. This requirement is in place to protect the interests of all parties and to ensure that they are fully informed about the potential conflicts of interest that can arise when a broker represents both the buyer and the seller in the same transaction.

Obtaining written consent helps establish transparency and clarity in the relationship between the broker and the parties. It ensures that both parties understand that the broker will be representing both sides and may face challenges in maintaining complete loyalty to either party due to their dual role. This written agreement is a safeguard designed to achieve fairness and uphold ethical standards in real estate transactions.

Other options fail to acknowledge this crucial requirement. For instance, dual agency is not limited to commercial transactions, nor can it be exercised solely at the broker's discretion without consent from both parties. Additionally, a state waiver is not a valid means to bypass the necessity for consent in dual agency situations. Thus, the importance of obtaining written consent underscores the legal and ethical responsibilities brokers have in their practice.