Agency
What is 'undisclosed dual agency' and why is it a serious violation in Nevada?
ADual agency where the broker is not physically present
BWhen an agent represents both buyer and seller in the same transaction without informing and obtaining written consent from both parties — it violates fiduciary duties, Nevada law, and NREC regulations, and can result in license suspension or revocation✓ Correct
CDual agency where only one party knows about the arrangement
DA minor procedural violation requiring only a warning letter from NREC
Explanation
Undisclosed dual agency is among the most serious agency violations in Nevada. When an agent secretly represents both sides, they inevitably cannot fully serve both parties' conflicting interests. They may use one party's confidential information to benefit the other. Nevada requires written, informed consent from both parties before dual agency can exist. Violations can result in license suspension/revocation, civil liability for breach of fiduciary duty, and potential rescission of the transaction.
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