Dual agent can't disclose either side's price flexibility or motivation
Before you read
Test yourself first: 5 questions
Question 1 of 5
When a broker appoints one agent to represent the buyer and another to represent the seller in the same transaction, it is:
Answer: A. Designated (appointed) agency lets a broker assign different associated agents to each party, reducing the conflicts of full dual agency.
Question 2 of 5
In designated agency, the broker:
Answer: B. Designated (appointed) agency lets a broker assign separate agents in the firm to each party so each client still receives individual representation.
Question 3 of 5
Which of the following is a benefit of designated agency over traditional dual agency?
Answer: B. Designated agency assigns separate agents to each party so each client can receive more complete individual representation than a single dual agent could provide.
Question 4 of 5
Dual agency is legal only when:
Answer: B. Dual agency (representing both sides) requires the informed, written consent of both buyer and seller; undisclosed dual agency is illegal.
Question 5 of 5
Undisclosed dual agency is:
Answer: A. Representing both parties without the informed written consent of each is illegal and breaches loyalty/disclosure duties.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Dual agency: ONE licensee represents both sides — needs INFORMED WRITTEN consent from both
- Dual agent can't disclose either side's price flexibility or motivation
- Designated agency: broker appoints separate agents in the same firm for each side
- Undisclosed dual agency = license discipline + voidable deal + lost commission
- Some states ban dual agency entirely — know yours
Dual & Designated Agency: FAQs
Is Dual & Designated Agency on the real estate exam?
Yes. Agency & Fiduciary Duties is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
