Final answer:
Informed consent in the context of dual agency requires the agent to disclose to both the buyers and sellers that they represent both parties, providing detailed explanations of obligations and potential conflicts of interest. For legal dual agency, both parties must agree in writing to this arrangement. Option D is the correct answer.
Step-by-step explanation:
Informed consent is a fundamental principle in both research and real estate practices. When it comes to dual agency, informed consent requires that a real estate agent must disclose to both the buyers and the sellers that they represent both parties. This disclosure is critical because a dual agent must not favor one party over the other and must work in the best interests of both. The informed consent process in dual agency ensures that both buyers and sellers are fully aware of the agent's role and agree to this arrangement before proceeding with any transactions.
In the context of dual agency, informed consent typically includes a detailed explanation of the dual agent's responsibilities and limitations, the rights of the buyers and sellers, and any potential conflicts of interest. The agent must clearly outline all risks and benefits associated with dual agency. Only after this information has been provided can the buyers and sellers give their knowledgeable agreement, allowing the licensee to represent both parties.
For a dual agency to be legally established, both buyers and sellers must agree, in writing, to allow the agent to represent both parties in the transaction. This means that the correct option relating to dual agency and informed consent is: D. Both buyers and sellers agree to allow the licensee to represent both parties.