Which of the following is NOT true about dual agency?

Dual agency refers to a situation in real estate transactions where one agent represents both the buyer and the seller. This arrangement can indeed lead to a conflict of interest, as the agent must balance the interests of both parties. Therefore, it is crucial that dual agency requires clear representation of all parties involved, ensuring that everyone understands the agent's role and the nature of the relationship.

For dual agency to be ethical and legally compliant, it necessitates informed consent from both the buyer and the seller. This consent is essential because it acknowledges that both parties are aware of the potential conflicts that might arise and still agree to proceed under the dual agency arrangement.

The option stating that dual agency allows for secret negotiations between parties is fundamentally inaccurate. Transparency is vital in dual agency relationships to maintain trust and fairness. Secret negotiations would undermine the very principle of representation, as parties should be fully aware of their positions and negotiations. Hence, it is incorrect to say that dual agency permits these secret negotiations.