Question

____ is an agency arrangement wherein both parties to the transaction are represented by their own agent, but both are employed by the same brokerage.

Answer 1

Dual agency is an agency arrangement wherein both parties are represented by their own agent, but both are employed by the same brokerage. The agent has a duty to be loyal and act in the best interest of both parties.

Step-by-step explanation:

Dual agency is an agency arrangement wherein both parties to the transaction are represented by their own agent, but both are employed by the same brokerage. In this type of arrangement, the agent has a duty to be loyal and act in the best interest of both parties. The agent must maintain confidentiality and disclose any relevant information that could affect the transaction.

For example, in real estate, dual agency occurs when the buyer and the seller are both represented by agents from the same real estate brokerage. The agents must provide fair and impartial representation to both parties while fulfilling their fiduciary duties.