Which statement accurately describes dual agency in NY real estate practice?

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Multiple Choice

Which statement accurately describes dual agency in NY real estate practice?

In NY real estate, dual agency means one broker represents both the buyer and the seller in the same transaction. This is allowed only if both parties give written informed consent after being fully aware of the potential conflicts. To protect each party’s interests, the broker can use designated agency—having separate agents within the same brokerage represent each side—so each client maintains a distinct fiduciary relationship. This setup helps preserve confidentiality and loyalty to both sides while the deal proceeds. Without written consent and proper disclosure, or if the same agent represents both sides without proper safeguards, the arrangement isn’t allowed.

In NY real estate, dual agency means one broker represents both the buyer and the seller in the same transaction. This is allowed only if both parties give written informed consent after being fully aware of the potential conflicts. To protect each party’s interests, the broker can use designated agency—having separate agents within the same brokerage represent each side—so each client maintains a distinct fiduciary relationship. This setup helps preserve confidentiality and loyalty to both sides while the deal proceeds. Without written consent and proper disclosure, or if the same agent represents both sides without proper safeguards, the arrangement isn’t allowed.

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