AgencyIntermediateDelaware Exam

Under Delaware law, what is 'undisclosed dual agency' and why is it prohibited?

AWorking for two clients in two separate transactions simultaneously
BSecretly representing both buyer and seller without disclosure and consentCorrect
CUsing two different agency disclosure forms for the same transaction
DHaving two licensed agents in the same office working on the same transaction

Why Secretly representing both buyer and seller without disclosure and consent Is Correct

Answer B: Secretly representing both buyer and seller without disclosure and consent

Undisclosed dual agency — representing both buyer and seller without disclosure and consent — is prohibited in Delaware because the agent cannot fully serve two opposing interests. Each party has a right to know who the agent represents.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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