1. Which statement about dual agency is correct?
Answer & explanation
Answer: D. Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.
agency
dual agency
Dual agency occurs when one agent or brokerage represents both the buyer and the seller in the same transaction. Because the parties' interests conflict, dual agency typically requires informed written consent from both, and the agent's duties are limited, especially loyalty and confidentiality about price and motivation. Some states prohibit dual agency or use designated agency or transaction brokerage instead; rules vary by state.
- Exam tip
- Undisclosed dual agency is illegal and can void the commission. A dual agent cannot advocate for either side on price.
- Example
- A buyer who calls the listing agent directly and asks that agent to represent her too creates dual agency, which both parties must consent to in writing.
Related terms & state variants
Sources
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Last verified: 2026-10-23