Question 19

A licensee may represent both the seller and the buyer when both parties are informed of the agreement and consent to it in writing.

In situations where a licensee represents both the seller and the buyer, it is imperative that both parties are fully informed of the arrangement and provide their written consent. This ensures transparency and protects the interests of all involved in the transaction.

A) When the licensee's principal broker agrees to the arrangement in writing.

While the principal broker's written agreement is important, it is not sufficient on its own. The licensee must also obtain informed consent from both the seller and the buyer to represent both parties legally and ethically in a transaction.

B) When the licensee is being paid by the buyer.

Payment by the buyer does not automatically allow a licensee to represent both the seller and the buyer. The key factor is that both parties must be informed of the dual representation and consent to it in writing, regardless of who is paying the licensee.

C) When both parties are informed of the agreement and consent to it in writing.

This option correctly outlines the necessary conditions for a licensee to represent both the seller and the buyer. Both parties must be aware of the dual representation and must provide their consent in writing to ensure that the transaction is handled fairly and ethically.

D) Never.

This statement is incorrect as there are circumstances under which a licensee can represent both the seller and the buyer, provided that proper consent and disclosure are obtained from both parties.

Conclusion

Option C is definitively correct because it highlights the essential requirement of informed consent from both the seller and the buyer in writing. All other options fail to address the necessary conditions for dual representation, making them inappropriate in this context. Proper communication and agreement are crucial for ethical practice in real estate transactions.