In what situation is dual agency typically permissible?

Dual agency occurs when a single agent represents both the buyer and the seller in a transaction. This scenario can create potential conflicts of interest, making disclosure and agreement essential for maintaining transparency and protecting the interests of both parties involved.

The correct response highlights that dual agency is typically permissible when both the buyer and seller have agreed to the arrangement in writing. This written consent is crucial as it ensures that all parties are fully informed and have acknowledged the potential implications of having a single agent represent both sides. By obtaining this agreement, the agent also adheres to legal requirements that vary by location, thus providing a framework for ethical practice within the real estate transaction.

The other options presented do not align with the general principles of dual agency. For instance, the idea that having the agent from a different brokerage allows for dual agency is misleading, as the same agent must represent both parties regardless of brokerage affiliation. Additionally, representing only a buyer inherently does not create a dual agency scenario, as it involves solely acting on behalf of one party. Finally, while handling commercial transactions can involve dual agency, the critical requirement of written consent remains paramount, regardless of the transaction type.