Question 23

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

Dual agency is permissible in Pennsylvania as long as both parties involved in the transaction consent to the arrangement in writing. This written agreement ensures that all parties are informed and protected in the dual representation scenario.

A) illegal under Pennsylvania law.

This option is incorrect because dual agency is not illegal in Pennsylvania. While there are regulations governing its practice, it is allowed when proper consent is obtained.

B) legal providing both parties benefit in the transaction.

While it is true that dual agency can be legal, this option is misleading. The legality of dual agency in Pennsylvania does not depend solely on whether both parties benefit; it specifically requires written consent from both parties.

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

This option is incorrect as dual agency in Pennsylvania must be agreed upon in writing, not orally. Oral agreements do not satisfy the legal requirements for dual agency and can lead to disputes.

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

This is the correct answer because it accurately reflects Pennsylvania's legal requirements for dual agency. Written consent is essential to ensure transparency and protect the interests of both parties involved in the transaction.

Conclusion

Dual agency is a legal practice in Pennsylvania when both parties provide their written consent, making option D the definitive correct answer. The other options either misrepresent the law or fail to capture the necessity of written agreement, highlighting the importance of clear communication and documentation in real estate transactions.