Agency

What is 'informed consent' in the context of California dual agency?

AThe seller and buyer both receive the same commission disclosure form
BBoth the buyer and seller knowingly agree to dual agency representation after being fully informed of its implications✓ Correct
CThe broker obtains written permission from the DRE to represent both parties
DBoth parties agree to use the same escrow company chosen by the broker

Explanation

For dual agency to be lawful in California, both the buyer and seller must give informed written consent — meaning they understand what dual agency is, the limitations it places on the agent's duties, and still agree to proceed. Consent must be obtained before or when the offer is made.

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