Under what condition is dual agency not permissible?

Dual agency occurs when a broker represents both the buyer and the seller in a real estate transaction. This arrangement can present a conflict of interest since the broker must balance the needs and interests of both parties. Therefore, for dual agency to be permissible, both parties must consent to it.

When one or both parties refuse to agree to dual agency, it creates a situation where consent, which is a critical element for the arrangement, is absent. Without mutual agreement, the broker cannot ethically or legally represent both parties, as doing so would violate fiduciary duties owed to each client. This is why the refusal to agree to dual agency makes it impermissible.

In contrast, the other scenarios mentioned—whether in vacant land transactions, commercial transactions, or rental agreements—can potentially allow for dual agency, provided that both parties consent. The restrictions on dual agency primarily concern situations where consent is not achieved.