Question

Which of the following is TRUE regarding dual agency relationships in New York?

a. they are permissible with timely disclosure and informed consent
b. they are illegal under all circumstances
c. they are allowed only in commercial transactions
d. they are allowed only in the sale of condominium or cooperative properties

Answer 1

Dual agency relationships are permissible in New York with the timely disclosure and informed consent of all parties involved in the transaction. The written acknowledgment typically comes in the form of a disclosure form explaining the dual representation.

Step-by-step explanation:

The correct answer regarding dual agency relationships in New York is option a: they are permissible with timely disclosure and informed consent. In New York, a real estate broker may act as a dual agent representing both the buyer and the seller in a transaction with the written acknowledgment and consent of both parties. This consent typically involves a disclosure form that details the responsibilities and limitations that come with a dual agency relationship, emphasizing that the agent may not provide the full range of fiduciary duties to either party. Nevertheless, such arrangements are legal as long as everyone involved is fully informed and agrees to the dual representation.