64. When may a licensee represent both the seller and the buyer?
Answer: C
A licensee may represent both the seller and the buyer when both parties are informed of the agreement and consent to it in writing.
A licensee can act as a dual agent, representing both the seller and the buyer, provided that both parties are fully informed of the arrangement and give their written consent. This ensures transparency and protects the interests of all involved.
A) When the licensee's principal broker agrees to the arrangement in writing.
While the principal broker's agreement is important, it alone does not suffice for dual agency. Both the seller and the buyer must also be informed and provide their consent in writing for the licensee to represent both parties legally.
B) When the licensee is being paid by the buyer.
Payment by the buyer does not automatically allow a licensee to represent both parties. The key requirement is that both the seller and the buyer must be informed of the dual agency situation and consent to it in writing, ensuring that both parties' interests are considered.
C) When both parties are informed of the agreement and consent to it in writing.
This option is correct as it encapsulates the legal requirement for dual agency. Both the seller and the buyer must be made aware of the dual representation and must provide their written consent to ensure that the arrangement is ethical and lawful.
D) Never.
This option is incorrect because dual agency is permissible under specific conditions. The licensee can legally represent both parties if there is proper disclosure and written consent from both the seller and the buyer, contrary to the assertion that it is never allowed.
Conclusion
The correct answer, C, highlights the essential legal requirement for dual agency, which is the informed consent of both parties in writing. Options A and B fail to address this critical aspect, while option D misrepresents the legality of dual agency altogether. Thus, understanding the necessity of consent and disclosure is fundamental for compliance in real estate transactions.