With this form, a broker may disclose their dual agency relationship to both the buyer and seller and obtain written consent from each of them to continue services.
A dual agent is a broker who simultaneously represents the best interest of opposing parties in a transaction, e.g., both the buyer and seller. This encompasses both the broker and the agents they employ.
The dual agency alone creates a conflict of interest, which needs to be promptly disclosed to each client.
A dual agency relationship may exist in any brokered transaction, such as a:
- sale;
- rental or leasing transaction; or
- mortgage origination or assignment.
In sales transactions, the conflict of interest in a dual agency typically evolves when the buyer:
- is an existing client as they have received information from the broker or their agents on qualifying properties listed by other brokers; and
- is now exposed to or express interest in property listed by the broker.
Dual agency has always been proper brokerage practice. It is a situation that arises naturally in the course of representing buyers and sellers. However, the existence of a dual agency is to be promptly disclosed to each client. [CC §2079.17]
With RPI’s Notice and Consent to Dual Agency form, a broker may disclose their dual agency relationship to both the buyer and seller and obtain written consent from each of them to continue services. [See RPI Form 117]
The contents of the Notice and Consent to Dual Agency form includes:
- the address of the property [See RPI Form 117 §1];
- information regarding the broker’s responsibility in the dual agency [See RPI Form 117 §2];
- a notice which contains a declaration that the buyer negotiating to purchase the listed property is represented by the broker who also represents the seller [See RPI Form 117 §3]; and
- a notice which states the broker and their agent may continue to represent both the buyer and seller. [See RPI Form 117 §4]
Each participant then signs the form, including the buyer, the seller, the broker and the broker’s agent. [See RPI Form 117]
A broker who fails to promptly disclose their dual agency at the moment it arises is subject to:
- the loss of the brokerage fee;
- liability for their principals’ money losses; and
- disciplinary action by the DRE. [BPC §10176(d)]
Form navigation page published 03-2021.
Form last revised 2011.
