Question 52

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

Dual agency refers to a situation in real estate where a single agent represents both the buyer and the seller in a transaction. This practice is legal in Pennsylvania as long as both parties provide their consent in writing.

A) illegal under Pennsylvania law

This option is incorrect because dual agency is not illegal in Pennsylvania. While there are specific regulations surrounding its practice, the concept itself is permissible provided the necessary agreements are in place.

B) legal providing both parties benefit in the transaction

While this statement acknowledges the legality of dual agency, it is misleading. Dual agency is not contingent solely on the benefits to both parties but rather on obtaining mutual agreement, specifically in writing, which this option fails to mention.

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

This option is incorrect because Pennsylvania law requires that the agreement for dual agency be documented in writing, rather than being based on an oral agreement. Oral agreements do not fulfill the legal requirements for dual agency.

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

This is the correct answer, as it accurately captures the legal stipulation that both the buyer and seller must provide written consent for dual agency to be valid in Pennsylvania. This requirement ensures transparency and protects the interests of both parties involved in the transaction.

Conclusion

The correct answer is definitive because it aligns with Pennsylvania law regarding dual agency, which mandates written consent from both parties. Options A, B, and C either misrepresent the legality of dual agency or fail to mention the necessary written agreement, thereby failing to meet the legal criteria essential for this practice.