Dual agency occurs when one license holder represents the buyer and the seller in the same transaction. In marketing disclosures, what is required?

• A. Clearly inform both parties of the dual role and obtain informed consent.
• B. Disclose only to the seller.
• C. Share confidential information to facilitate the deal.
• D. Avoid any disclosure once consent is given.

Answer: (A)

Dual agency in marketing disclosures centers on making sure both parties understand the situation and agree to it in writing. When one license holder represents both the buyer and the seller, there is a potential conflict of interest, since the agent is obligated to both sides. The right requirement is to clearly inform both parties about the dual role and obtain informed consent from each in writing. This means the disclosure should spell out what dual agency means, the potential conflicts, and the fact that the agent owes fiduciary duties to both sides and cannot advocate exclusively for either party. It also typically includes offering each party the opportunity to seek independent legal counsel and explaining how confidential information will be handled.

Why the other options don’t fit: explaining the dual role only to the seller leaves the buyer uninformed; sharing confidential information to facilitate the deal undermines the duty of confidentiality and can harm one party; and avoiding disclosure after consent is given ignores the ongoing need to manage conflicts and document the arrangement properly.