What is required for dual agency in real estate transactions?

In real estate transactions, dual agency occurs when a single agent represents both the buyer and the seller in the same transaction. The critical requirement for establishing dual agency is that there must be full disclosure and consent from both parties involved in the transaction.

This means that the real estate agent must inform both the buyer and the seller about their role as a dual agent, highlighting the implications and potential conflicts of interest that could arise from this arrangement. Both parties must then provide their explicit consent, usually in writing, to proceed with the dual agency relationship. This process helps ensure transparency and protects the interests of both the buyer and the seller, as they are fully aware of who is representing them and the nature of that representation.

In contrast, other options suggest various agreements or notifications that do not adequately address the fundamental requirements of dual agency. A verbal agreement from one party is insufficient, as dual agency necessitates consent from both parties to avoid potential legal issues. Notification to the local real estate board or a written agreement from a third party also does not meet the criteria needed for dual agency, as the focus must remain on the relationship between the agent and the two parties they represent. Thus, the necessity for full disclosure and consent from both parties is integral to the practice of