What is the consequence of failing to obtain written informed consent in a dual agency situation?

In a dual agency situation, the requirement for written informed consent is critical for legal and ethical compliance. When an agent represents both the buyer and the seller in a real estate transaction, they must disclose this dual relationship and obtain explicit written consent from both parties. Failing to do so makes the arrangement illegal because it compromises the agent's ability to fully represent and advocate for the interests of either party.

The rationale behind requiring written informed consent is to ensure transparency and protect the parties involved. Without this consent, the dual agency could lead to conflicts of interest and a breach of fiduciary duties, as the agent may struggle to fulfill their obligations to both parties impartially. This lack of consent could expose the agent to legal liabilities stemming from the unauthorized practice of real estate.

Thus, the consequence of failing to obtain written informed consent in a dual agency scenario is that the agency relationship is rendered illegal, emphasizing the importance of following proper legal protocols to uphold trust and integrity in real estate transactions.