What is the general rule regarding dual agency in real estate transactions?

The rationale behind the rule requiring consent from both parties in dual agency situations is rooted in the principles of transparency and fairness in real estate transactions. Dual agency occurs when a single agent or brokerage represents both the buyer and the seller in the same transaction. This can create potential conflicts of interest since the agent is tasked with the duties owed to both parties, which may not always align.

To ensure that both parties are aware of the implications and implications of this representation, legal guidelines mandate that informed consent is obtained. This consent typically involves a written agreement where both the buyer and seller acknowledge their understanding of dual agency and agree to allow the agent to represent their mutual interests.

This requirement for consent serves to protect the parties involved and helps maintain the integrity of the transaction process. It emphasizes the importance of communication and trust in real estate dealings, ensuring that clients are aware of their agent's responsibilities and any possible compromises that may arise from the dual representation. Without this consent, dual agency could lead to ethical dilemmas and potential concerns about the agent's ability to advocate effectively for the interests of both parties.