Final Answer:
To make dual agency legal, clear disclosure and informed consent from all involved parties are essential.
Step-by-step explanation:
Dual agency refers to a situation where a real estate agent represents both the buyer and the seller in a transaction. To legalize this practice, stringent measures ensuring transparency and consent are necessary.
Clear disclosure mandates that the agent explicitly informs both parties of their dual role and the potential conflicts of interest it may entail. This disclosure must be comprehensive, leaving no ambiguity about the agent's responsibilities and loyalties to each party involved.
Informed consent from all parties involved is crucial. This means that both the buyer and seller must fully understand and agree to the agent's dual role before proceeding with the transaction. Without this explicit agreement, conflicts of interest and misunderstandings may arise, leading to legal complications and ethical concerns.