Oregon Real Estate Practice Test

In a disclosed limited agency agreement, what is required before a licensee can represent both parties?

1. Oral permission from one party

2. Written permission from both the seller and buyer

3. Only the seller's written permission

4. No permission is needed

The correct answer is: Written permission from both the seller and buyer

In a disclosed limited agency agreement, it is essential that a licensee obtains written permission from both the seller and the buyer before representing both parties in a transaction. This requirement ensures transparency and protects the interests of all involved in the transaction. In situations where a licensee acts as a representative for both the buyer and the seller, obtaining consent in writing is crucial for several reasons. Firstly, it establishes a clear understanding of the roles and expectations of the licensee among the parties, helping to avoid misunderstandings or conflicts of interest. Secondly, written consent serves as a legal safeguard, ensuring that both parties are aware of the dual representation and have agreed to it voluntarily. This is particularly important in real estate transactions where fiduciary duties and ethical responsibilities must be upheld. By obtaining written permission from both parties, the licensee can uphold these ethical standards while providing effective representation, thereby facilitating a smoother transaction process.