What role does consent play in dual agency scenarios?

In dual agency scenarios, consent plays a crucial role because it is a legal requirement for compliance with real estate regulations. Dual agency occurs when a single agent represents both the buyer and the seller in a transaction. Since this situation can create potential conflicts of interest, both parties must give informed consent for the agent to represent them simultaneously. This consent ensures that both the buyer and the seller understand the implications of dual agency, including the agent's limited ability to advocate fully for either party since they represent both sides.

Without proper consent, the dual agency relationship could lead to ethical and legal issues, including claims of misrepresentation or breach of fiduciary duty. Therefore, obtaining consent is not just a formality; it is necessary to align with legal standards and protect both parties’ interests throughout the transaction.

The other options misunderstand the significance of consent in dual agency. Trust between parties does not eliminate the legal requirement for consent, nor can consent be waived simply because negotiations become challenging. Additionally, consent is necessary for both the seller and the buyer, not just one party.