What is a requirement for Duel Agency?

To establish dual agency, a significant requirement is obtaining written formal consent from both clients involved in the transaction. Dual agency occurs when a real estate agent represents both the buyer and the seller in the same transaction. This situation can create potential conflicts of interest, as the agent must navigate the interests of both parties, which often differ.

By requiring written consent from both clients, the law ensures that both parties are fully aware of the agent's role and the implications of dual representation. This written agreement serves to protect the interests of clients, affirming that they understand and agree to the potential limitations on the agent's ability to advocate fully for either side.

The other options do not meet the legal standards or best practices required for dual agency. Oral consent may not provide the clarity or assurance that written consent offers. A mutual agreement on commission rates is not a requirement specifically tied to dual agency, but rather a broader aspect of real estate transactions. Similarly, the presence of a third-party mediator is not a standard requirement for dual agency scenarios. The emphasis on written consent underscores the importance of transparency and accountability in real estate practices.