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A realty company has entered agency agreements with both the sellers and the buyers in the transaction of a property is this allowable?

A) Acceptable practice
B) Unethical conduct
C) Legal but discouraged
D) Against industry regulations.

1 Answer

1 vote

Final answer:

It is generally an acceptable practice for a realty company to enter agency agreements with both the sellers and buyers as long as it is transparent and all parties consent, known as dual agency.

Step-by-step explanation:

When a realty company has entered agency agreements with both the sellers and the buyers in the transaction of a property, it is generally considered an acceptable practice, known as dual agency, as long as it is disclosed to and consented to by all parties involved. This alignment of interests must be transparent to ensure that there is no conflict of interest and that the realtor can fairly represent both sides. Ethical guidelines and state regulations frequently dictate the necessity of such disclosure and consent for dual agency scenarios to ensure that all parties are aware of any potential complexities in such transactions.

User Alireza Sobhani
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