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Does a licensee working for a seller-client and working with a buyer-customer in the same transaction involve dual agency?

1) no
2) yes

1 Answer

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Final answer:

A licensee working for a seller and with a buyer in the same transaction does not automatically mean there is a dual agency; it depends on whether the licensee has entered into a fiduciary relationship with both parties. Dual agency requires explicit consent and disclosure by all involved.

Step-by-step explanation:

When a licensee represents both the seller and the buyer in the same transaction, this situation is commonly referred to as a dual agency. In the scenario described, where a licensee is working for a seller-client and with a buyer-customer, it may not necessarily constitute a dual agency. It depends on the nature of the agreements in place. A dual agency can only occur if the licensee represents both the buyer and the seller in a fiduciary capacity. If the licensee is merely providing assistance to the buyer without establishing a representative relationship, then it would not be considered a dual agency. However, if the licensee has fiduciary duties to both parties, then yes, it is a dual agency situation. This dual representation must be agreed upon by all parties involved and typically requires full disclosure and consent.

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