Which statement best describes informed consent in relation to dual agency?

Informed consent in the context of dual agency is best understood as a process where both the buyer and seller have a clear understanding of what dual agency entails, and they provide their agreement to this arrangement in writing. This is crucial because dual agency can create potential conflicts of interest, as the broker represents both parties in a transaction.

The requirement for written consent serves to protect all parties involved, ensuring that they are fully aware of the implications that come with having a single agent represent multiple parties with potentially conflicting interests. By having both the buyer and seller acknowledge and accept the dual agency status in writing, a robust framework for transparency and trust is established, which is essential in real estate transactions.

Other options lack the comprehensive nature of informed consent. For instance, merely informing one party of representation does not fulfill the requirement for mutual understanding and agreement. Additionally, the focus should be on both parties recognizing the dual agency role rather than on the licensee's obligations in only one direction.