Oregon 30-Hour Real Estate Law Practice Test

If Frieda is practicing dual agency without informed consent, is her practice legal?

1. Yes, if both parties agree verbally

2. Yes, if it does not harm either party

3. No, it is illegal

4. Yes, as long as she discloses her role

The correct answer is: No, it is illegal

Frieda’s practice of dual agency without informed consent is illegal because dual agency requires full disclosure and consent from all parties involved in the transaction. In dual agency situations, a real estate agent represents both the buyer and seller, which creates a potential conflict of interest. For this reason, the law mandates that both parties must be fully informed about this dual representation and must consent to it explicitly. If Frieda does not obtain informed consent, she is breaching her fiduciary duties and violating real estate laws. This protection exists to ensure that both parties understand the implications of dual agency, including any potential limitations on the agent’s ability to advocate for their individual interests. Informed consent is critical in maintaining ethical standards in real estate practices, as it upholds transparency and trust in the agent-client relationship. Therefore, practicing dual agency without this consent does not align with legal and ethical real estate practices.