What does informed consent in dual agency require?

Informed consent in dual agency requires agreement from all parties involved because it involves the acknowledgment and acceptance of the risks and implications associated with the dual agency relationship. In this scenario, the agent represents both the buyer and the seller, which can lead to potential conflicts of interest. Therefore, for the dual agent to act ethically and within legal boundaries, all parties must fully understand the nature of the representation and agree to it.

This consent process ensures transparency, allowing both the buyer and seller to make informed decisions about their representation in the transaction. Simply having formal agreements between agents or disclosing financial incentives does not sufficiently address the need for all parties' understanding and agreement in a dual agency situation. Written communication among agents, while important for documentation purposes, does not substitute for the necessity of obtaining informed consent from both buyers and sellers.