Agency
In Pennsylvania, what is the effect of an agent's 'undisclosed dual agency'?
AIt voids the transaction automatically, requiring rescission
BIt may result in PREC disciplinary action, loss of commission, and liability to the harmed party✓ Correct
CIt is only a problem if the undisclosed dual agent receives compensation from both parties
DThere is no legal consequence if the transaction closes successfully
Explanation
Undisclosed dual agency — representing both buyer and seller without informed written consent — is a serious RELRA violation and breach of fiduciary duty. Consequences include: PREC disciplinary action (license suspension or revocation), potential forfeiture of commission, civil liability for damages suffered by the harmed party, and possible criminal charges if fraud is involved. Pennsylvania requires written informed consent before a licensee may act as a dual agent.
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