Difficulty: Medium

Average Score: 50%

Dual agency is:

Rationale

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

In Pennsylvania, dual agency is permissible if both parties to the transaction provide their informed consent in writing. This requirement ensures that all parties are aware of the dual representation and the associated potential conflicts of interest.

A (illegal under Pennsylvania law) YOUR ANSWER

Dual agency is not illegal in Pennsylvania; rather, it is regulated under specific conditions. The law allows for dual agency as long as there is proper disclosure and consent from both parties involved. Therefore, this choice misrepresents the legal status of dual agency in the state.

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

While dual agency can be legal, it does not hinge on both parties benefitting from the transaction. Consent is the critical factor, not the outcome or benefits derived from the transaction. This statement overlooks the essential requirement of written agreement, making it an incomplete representation of dual agency legality.

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

Oral agreements are insufficient for establishing dual agency in Pennsylvania. The law explicitly requires a written agreement to protect the interests of both parties and ensure they are fully informed of the dual representation. Thus, this choice fails to adhere to the legal requirements for dual agency.

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

This option correctly identifies the legal framework governing dual agency in Pennsylvania. The requirement for written consent is crucial to ensure transparency and protect the interests of both parties in the transaction, making this the accurate statement regarding dual agency.

Conclusion

In summary, dual agency is a permissible practice in Pennsylvania, contingent upon both parties providing written consent. This legal requirement is designed to maintain clarity and protect the interests of all involved in the real estate transaction. The other choices misrepresent the legal stipulations or requirements related to dual agency, underscoring the importance of written agreements in such scenarios.

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