Question 13

A licensee may withdraw from a dual agency agreement when one client refuses to sign the agreement.

A licensee has the option to withdraw from a dual agency agreement if one client does not provide their signature, indicating that they do not agree to the terms of the agency relationship.

A) a release is signed by one party

While a release signed by one party may terminate an agreement, it does not necessarily apply to the scenario of a dual agency agreement where both clients must consent. Therefore, this option does not adequately address the specific conditions required for withdrawal.

B) one client refuses to sign the agreement

This option is correct because if one client refuses to sign the dual agency agreement, it creates a situation where the licensee cannot proceed with the dual agency, thus allowing for withdrawal from the agreement.

C) all parties agree verbally to the agreement

Verbal agreements are generally not sufficient to establish or terminate legal contracts in real estate. Thus, this option fails to meet the necessary criteria for a valid withdrawal from a dual agency agreement.

D) the licensee's broker takes over the transaction

The involvement of the licensee's broker does not directly provide a basis for withdrawing from a dual agency agreement. The agreement's terms and the clients' consent are what govern the relationship, making this option incorrect.

Conclusion

The correct answer is option B, as a licensee may withdraw from a dual agency agreement when one client refuses to sign, demonstrating a lack of consent. The other options do not provide valid grounds for termination, as they either rely on verbal agreements or conditions unrelated to client consent. Thus, understanding the importance of client agreement is crucial in dual agency scenarios.