Difficulty: Medium

Average Score: 69%

Dual agency is

Rationale

Dual agency is legal providing both parties agree in writing to the representation.

In Pennsylvania, dual agency is permissible only when both parties involved in the transaction consent to the arrangement in writing. This written agreement ensures transparency and protects the interests of both parties during the transaction.

A (illegal under Pennsylvania law) YOUR ANSWER

Dual agency is not illegal in Pennsylvania; rather, it is regulated. The law allows for dual agency as long as there is proper disclosure and consent from both parties involved, which is not reflected in this choice.

B (legal providing both parties benefit in the transaction) YOUR ANSWER

While dual agency may indeed lead to benefits for both parties, this choice is incorrect because it lacks the necessary condition of written consent. The legality of dual agency in Pennsylvania hinges on the requirement for both parties to agree in writing, not merely to benefit from the transaction.

C (legal providing both parties agree orally to the dual representation) YOUR ANSWER

Oral agreements are insufficient for dual agency to be legally recognized in Pennsylvania. The law mandates that both parties must provide written consent to establish a dual agency relationship, making this option incorrect.

D (legal providing both parties agree in writing to the representation) CORRECT

This statement correctly identifies the primary condition under which dual agency is lawful in Pennsylvania. Written consent ensures that both parties are aware of and agree to the potential conflicts of interest inherent in dual agency situations.

Conclusion

Dual agency in Pennsylvania is a complex issue that requires careful handling to ensure all parties' interests are protected. The necessity for written consent is crucial in establishing the legality of dual agency, as it provides a clear record of agreement and safeguards against potential misunderstandings. Without this written agreement, dual agency cannot be considered permissible, underscoring the importance of adhering to legal requirements in real estate transactions.

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