Final answer:
In dual agency, the provision that must be included in the agreement and would NOT be needed for designated agency is disclosure and consent.
Step-by-step explanation:
In dual agency, the provision that must be included in the agreement and would NOT be needed for designated agency is disclosure and consent. In dual agency, the agent represents both the buyer and the seller in a real estate transaction, so it is crucial for the agent to disclose this dual role to both parties and obtain their consent.
Designated agency, on the other hand, involves two separate agents from the same brokerage representing the buyer and the seller. In this case, there is no need for disclosure and consent because the agents are already representing their respective clients.
Overall, the main difference between dual agency and designated agency lies in the representation of both parties in a real estate transaction.
In dual agency, an agreement should include a provision for informed consent that clearly states the dual agency relationship and potential conflicts of interest, unlike in designated agency where separate agents represent each party.
In dual agency, a provision that must be included in the agreement, which is not needed for designated agency, is the informed consent of both parties. This is because in a dual agency situation, the same real estate agent or broker represents both the buyer and the seller, which can create conflicts of interest. The informed consent provision must clearly disclose the potential conflicts and outline the agent's limitations in advocating exclusively for either party. In contrast, a designated agency allows the brokerage to assign different agents to represent the buyer and seller, thus reducing the need for such a provision since each agent can fully represent their client's interests.