In a jurisdiction where the common law of agency governs real estate activities, a buyer has a single agency relationship with a broker. The buyer wants to purchase one of the brokerage company's listings from a seller with whom the broker also currently has a single agency relationship. This will create dual agency but in order for this relationship to be legal, it will be necessary to have written consent of the

Rationale

Written consent of the buyer and seller is necessary for dual agency to be legal.

In a dual agency situation, where a broker represents both the buyer and seller, written consent from both parties is required to ensure transparency and protect the interests of all involved. This legal requirement helps clarify the broker's responsibilities and avoids potential conflicts of interest.

A (seller.) YOUR ANSWER

While the seller's consent is crucial in a dual agency situation, it is not sufficient on its own. The buyer's consent is equally important to ensure that both parties understand and agree to the broker's dual role, making the relationship legally compliant.

B (buyer.) YOUR ANSWER

The buyer's consent alone cannot establish a legal dual agency. Just like the seller, the buyer must agree to the dual representation. Therefore, without the seller's consent, the arrangement remains incomplete and potentially illegal.

C (buyer and seller.) CORRECT

This is the correct choice because both the buyer and the seller must provide written consent for a dual agency relationship to be considered legal. This requirement ensures that both parties are aware of the broker's dual representation and can make informed decisions regarding their interests in the transaction.

D (seller, buyer and broker.) YOUR ANSWER

While the broker's acknowledgment of the dual agency is important, the law specifically mandates that consent must come from both the buyer and the seller. The broker's role is to facilitate this consent rather than being a party to it, making this option incorrect.

Conclusion

In summary, the legality of a dual agency relationship in real estate requires written consent from both the buyer and seller. This ensures that all parties are informed and agree to the broker's role in representing both sides, thus fostering transparency and trust in the transaction process. Without the necessary consent from both parties, the dual agency cannot be legally established.

Written consent of the buyer and seller is necessary for dual agency to be legal.

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