Question 83

The licensee must always obtain the written, informed consent of each party.

In order to represent both parties in a real estate transaction, the licensee is required to secure the written and informed consent of each party involved. This is essential to ensure transparency and protect the interests of all parties in the transaction.

A) the written, informed consent of each.

This option is correct because real estate regulations mandate that a licensee must obtain explicit consent from both parties when acting in a dual agency capacity. This consent ensures that both parties are aware of the potential conflicts of interest and agree to the terms of the representation.

B) an agreement that each will pay the agent's fee.

This option is incorrect as it focuses on the financial arrangement rather than the necessary consent for dual representation. While discussing fees is important, it does not fulfill the requirement of obtaining consent to represent both parties in a transaction.

C) a release of liability from each.

This option is also incorrect because obtaining a release of liability is not a requirement for dual agency representation. Instead, it could be relevant in specific legal contexts but is not a substitute for the essential written consent needed from both parties.

D) a signed agency agreement.

This option is incorrect since a signed agency agreement alone does not guarantee that the licensee has obtained the informed consent of both parties. It is critical to have explicit written consent to ensure compliance with legal and ethical standards when representing both sides.

Conclusion

The necessity of obtaining the written, informed consent of each party is foundational in real estate transactions involving dual agency. This requirement protects the interests of all parties and ensures ethical practices, which distinguishes it as the only correct option. All other options fail to address the core principle of consent necessary for lawful representation.