National Real Estate Exam (PSI)General Principles of AgencyMedium
An agent represents both the buyer and the seller in the same transaction, and both parties have been informed and have consented in writing. This arrangement is best described as:
- ADesignated agency
- BImplied agency
- CSubagency
- DDisclosed dual agency
Show answer & explanationAnswer & explanation
Correct answer: D. Disclosed dual agency
When one agent represents both parties with full knowledge and consent, it is disclosed dual agency. Designated agency involves two different agents from the same brokerage each representing one party separately.
Why the other options are wrong
- A. Designated agency assigns different agents within the firm to each party, not one agent for both.
- B. Implied agency arises from conduct, not from an explicit disclosed dual representation arrangement.
- C. Subagency involves a second agent working for the listing broker's principal, not a single dual agent.
Disclosed Dual Agency
A single agent represents both buyer and seller in one transaction with full disclosure and informed consent from both parties.
- Requires written consent in most states
- Agent's loyalty duty is limited/neutral
- Different from designated agency (two separate agents)
Memory trick: One agent, two hats, full disclosure