AgencyIntermediateDelaware Exam

What is 'dual agency' and what are its limitations in Delaware?

AAn agent working for two different brokerages at once
BRepresenting both buyer and seller in the same transaction; even with disclosure and consent, the dual agent cannot fully advocate for either party and must limit fiduciary dutiesCorrect
CAn agent who works both commercial and residential transactions
DSimply two separate agents from the same brokerage, each independently representing a different party to the deal, a position that many in the industry would generally find reasonable

Why Representing both buyer and seller in the same transaction; even with disclosure and consent, the dual agent cannot fully advocate for either party and must limit fiduciary duties Is Correct

Answer B: Representing both buyer and seller in the same transaction; even with disclosure and consent, the dual agent cannot fully advocate for either party and must limit fiduciary duties

Disclosed dual agency in Delaware requires written consent of both parties. The dual agent cannot: disclose the seller's minimum price, reveal the buyer's maximum, or advocate fully for either party's position.

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.

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