Question 16

Dual agency is legal providing both parties agree in writing to the representation.

Dual agency is a legal practice in which a real estate agent represents both the buyer and the seller in a transaction, but it requires that both parties agree to this arrangement in writing.

A) illegal under Pennsylvania law

This option is incorrect because dual agency is not illegal under Pennsylvania law. While it is regulated, it is permissible as long as certain conditions are met, particularly regarding consent from both parties.

B) legal providing both parties benefit in the transaction

This option is misleading. While dual agency can be legal under specific circumstances, it does not hinge solely on the benefit to both parties. The primary requirement is that both parties must agree to the dual representation in writing, regardless of the transaction's benefits.

C) legal providing both parties agree orally to the dual representation

This option is incorrect because, for dual agency to be considered legal in Pennsylvania, the agreement must be documented in writing. Oral agreements do not fulfill the legal requirements established for dual agency.

D) legal providing both parties agree in writing to the representation

This option is correct as it accurately reflects the legal requirements for dual agency in Pennsylvania. Both parties must give their written consent for the dual representation to be valid and enforceable.

Conclusion

The correct answer, D, clearly outlines the legal requirement for dual agency in Pennsylvania, emphasizing the necessity of written consent from both parties. Options A, B, and C fail to meet the legal criteria, either by misrepresenting the legality of dual agency or by misunderstanding the requirement for written agreement. Thus, understanding the importance of written consent is crucial in real estate transactions involving dual agency.