What can happen if a client does not understand the implications of dual agency?

Prepare for the Agent Roles and Obligations in Maryland Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

If a client does not understand the implications of dual agency, it is indeed plausible that they may later assert that they were misrepresented. In a dual agency situation, the agent represents both the buyer and the seller, which can create conflicting interests. If the client is not fully informed about how this arrangement affects their rights and obligations, they may feel that they were not adequately represented, which could lead to claims of misrepresentation. This highlights the importance of clear communication and informed consent in agency relationships.

The other options suggest scenarios that are less likely to occur. For instance, a transaction does not automatically become void simply because a client lacks understanding; the validity of the agreement would still stand unless there was a significant legal reason for nullification. Additionally, a licensee continuing without consequences fails to recognize that there are legal and ethical obligations the agent must adhere to, especially in terms of ensuring the client comprehends important aspects of dual agency. Lastly, requiring both parties to redo the contract would not be a necessary outcome of a client's misunderstanding; instead, the responsibility lies with the agent to ensure that the client is adequately informed.

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