The controlling distinctions
What to remember when the answer choices are close.
Dual agency exists when an agent acts for both buyer and seller, or both tenant and landlord, in the same transaction.
Consent must be informed and written. The parties should understand the loss of undivided loyalty and the practical limits on advocacy and confidentiality.
Designated sales agents may advocate for different clients in negotiations, but both work under a broker who represents both sides as a dual agent.
A licensee does not disclose one principal's confidential bargaining information to the other merely because dual agency has been consented to.
A decision path
Work through the rule in this order.
- 1
Map both principals
Identify who represents the buyer or tenant and who represents the seller or landlord, including the broker at the top of each relationship.
- 2
Find the conflict
Ask whether the same agent or brokerage is connected to both principals in the same transaction.
- 3
Explain the limitation
The principals need enough information to understand what loyalty, advocacy, and confidentiality cannot operate in the usual way.
- 4
Obtain written consent
Do not treat silence, participation, or a late signature as a substitute for advance informed written consent.
Worked scenario
Two agents work for the same brokerage
One salesperson represents the seller and another represents the buyer, but both are associated with the same representative broker.
Best response
Do not assume the use of two salespersons eliminates dual agency. The broker represents both principals, and designated-sales-agent treatment requires the informed written consent described by section 443.
Why
The representation structure includes the supervising broker, not only the two people conducting the negotiations.
Exam lens
Words in the facts that should slow you down.
Common exam mistake
Assuming that two salespersons automatically mean separate agency. Follow the representation through the brokerage and then ask whether the required informed written consent exists.
Questions students ask
Short answers before you move on.
Can a broker represent both buyer and seller in New York?
Yes, if both principals give advance informed consent in writing after the dual role and its consequences are explained.
Does a designated sales agent provide full undivided loyalty?
No. Section 443 states that a designated sales agent cannot provide the full range of fiduciary duties and cannot provide undivided loyalty in the same way as a fully separate agency relationship.
Is cooperation between two different brokerages always dual agency?
No. Cooperation alone does not decide agency. The key question is whom each licensee and brokerage represents in the transaction.
Continue with the full subject lesson.
The subject hub adds definitions, scenarios, forms, misconceptions, worked examples, practice, and source context.
This guide supports exam preparation and general education. It does not decide duties in a specific transaction and is not legal advice.