Agency

Undisclosed dual agency is illegal because it:

AResults in higher commission costs for the buyer
BViolates the duty of loyalty owed to both clients simultaneously✓ Correct
CIs not permitted under federal law
DPrevents the transaction from being recorded properly

Explanation

Dual agency without disclosure and consent is illegal because it creates an inherent conflict of interest — the agent cannot fully serve the best interests of both buyer and seller at the same time.

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