Question 20

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

Dual agency is a legal practice in which a single real estate agent represents both the buyer and the seller in a transaction, provided that both parties have given their consent in writing.

A) illegal under Pennsylvania law

This option is incorrect as dual agency is not illegal in Pennsylvania. In fact, the state allows dual agency under specific conditions, particularly with proper disclosure and consent from both parties involved in the transaction.

B) legal providing both parties benefit in the transaction

While this statement suggests that dual agency can be legal, it inaccurately implies that the benefit to both parties is the primary condition for legality. The essential requirement is the written consent of both parties, not just mutual benefit.

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

This option is incorrect because it emphasizes oral agreement, which is not sufficient for establishing dual agency. Pennsylvania law requires that the agreement for dual representation be documented in writing to ensure clarity and protect the interests of both parties.

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

This option is correct. In Pennsylvania, dual agency is permissible when both the buyer and the seller provide written consent to the dual representation, ensuring that both parties are fully informed and agree to the arrangement.

Conclusion

Option D is definitively the correct answer as it accurately reflects the legal requirements for dual agency in Pennsylvania. All other options fail to meet the criteria set forth by state law, particularly the necessity of written consent, making them incorrect. Understanding these legal stipulations is crucial for real estate professionals to navigate dual agency ethically and effectively.