96. In a jurisdiction where the common law of agency governs real estate activities, a buyer has a single agency relationship with a broker. The buyer wants to purchase one of the brokerage company's listings from a seller with whom the broker also currently has a single agency relationship. This will create dual agency but in order for this relationship to be legal, it will be necessary to have written consent of the
Answer: C
Written consent of the buyer and seller is necessary for legal dual agency.
In this scenario, since the buyer is represented by a broker who also represents the seller, this situation creates a dual agency. For dual agency to be legally permissible, both the buyer and seller must provide written consent.
A) seller.
While the seller's consent is important in a dual agency situation, it is not sufficient on its own. Both the buyer and seller need to consent in writing to ensure the legality of the dual agency relationship.
B) buyer.
The buyer's written consent is crucial, but it is not the only requirement. The broker must also obtain consent from the seller to comply with the legal requirements for establishing a dual agency.
C) buyer and seller.
This option is correct because, in order for dual agency to be legal, both the buyer and the seller must provide their written consent. This ensures that all parties are aware of the dual representation and agree to the potential conflicts of interest.
D) seller, buyer and broker.
While the broker must facilitate the consent process, it is not necessary for the broker to provide written consent themselves for dual agency to be legal. The written consent of the buyer and seller alone suffices.
Conclusion
The requirement for both the buyer and seller to provide written consent is essential for the legality of dual agency. This option is definitive in ensuring that all parties are informed and agree to the arrangement, while the other options fail to encompass the necessity of mutual consent from both the buyer and seller.