Undisclosed dual agency is ...

• A. Representing both parties with consent of both.
• B. Representing only the buyer with consent of seller.
• C. Representing both parties in the same transaction with consent of both.
• D. Representing principals to a transaction without the knowledge and consent of both.

Answer: (D)

Undisclosed dual agency means a licensee represents both sides in a single real estate transaction without letting either party know and without obtaining their informed consent. This creates a conflict of interest because the agent owes loyalty and confidentiality to two clients with potentially opposing goals, and there’s a risk of biased advice or sharing of sensitive information that could hurt one party. Because of these fiduciary issues, undisclosed dual agency is generally illegal or prohibited in many places. The proper approach is to disclose and obtain written consent to dual agency (disclosed dual agency), or use a designated agency arrangement where separate agents handle each side under the same broker, all with full disclosure and consent.