Oregon 30-Hour Real Estate Law Practice Test

What type of agency can arise if both the buyer and seller are represented by different agents?

1. Exclusive agency

2. Underwriting agency

3. Single agency

4. Dual agency

The correct answer is: Dual agency

When both the buyer and the seller are represented by different agents within the same transaction, a dual agency is formed. This occurs when a single real estate firm represents both parties, creating a situation where one agent represents the seller and another agent from the same firm represents the buyer. In a dual agency scenario, the agent has a fiduciary duty to both clients, which can lead to complexities and potential conflicts of interest, as the agent must balance the interests of both parties. This arrangement is legal in Oregon but requires informed consent from both the buyer and the seller, ensuring they understand the implications of the dual representation. This contrasts with the other types of agency mentioned. Exclusive agency refers to a relationship where the seller retains the right to sell the property themselves without paying a commission, while single agency involves one agent representing only one party in a transaction, either the buyer or the seller, but not both. Underwriting agency is not a recognized term in real estate agency law and is typically related to insurance and financial services rather than real estate transactions.