9. A licensee may withdraw from a dual agency agreement, terminating the agreement, when
Answer: B
A licensee may withdraw from a dual agency agreement, terminating the agreement, when one client refuses to sign the agreement.
A licensee is allowed to withdraw from a dual agency agreement if one of the clients involved refuses to sign the agreement. This refusal indicates a lack of consent necessary for the dual agency to remain valid.
A) a release is signed by one party.
While a release signed by one party could potentially terminate the agreement, it does not specifically address the scenario where one client does not consent to the dual agency. A release typically involves mutual agreement and does not reflect the unilateral withdrawal option provided by a refusal to sign.
B) one client refuses to sign the agreement.
This option correctly identifies the condition under which a licensee may withdraw from a dual agency agreement. If one client does not sign, it signifies a lack of mutual consent required for the agreement to be valid, allowing the licensee to terminate their role in the dual agency.
C) all parties agree verbally to the agreement.
Verbal agreements, while potentially binding, do not necessarily provide the formal consent needed in dual agency arrangements. If there is no signed agreement, the situation remains precarious, and a refusal to sign from one client can still lead to withdrawal from the agreement.
D) the licensee's broker takes over the transaction.
The broker taking over does not inherently terminate the dual agency agreement. The agreement remains in place unless one party refuses to sign or other specific conditions are met. This option fails to address the precise legal grounds for withdrawal as outlined in the question.
Conclusion
The correct answer, option B, highlights the necessity of mutual consent in a dual agency agreement. Without the agreement of both clients, one client’s refusal to sign provides a legitimate basis for the licensee to withdraw. Other options either misinterpret the conditions under which an agency can terminate or do not address the essential requirement of consent.