PSI New Jersey Real Estate State Practice Exam

When must a licensee first secure an Informed Consent to Dual Agency?

1. Before showing a company listing to a buyer client

2. After the offer is accepted

3. At the time of closing

4. As soon as the contract is signed

The correct answer is: Before showing a company listing to a buyer client

A licensee must secure an Informed Consent to Dual Agency before showing a company listing to a buyer client because this is the moment when the potential for dual agency arises. Informed Consent to Dual Agency is crucial because it ensures that all parties are aware of the licensee's role in representing both the seller and the buyer. This consent must be obtained prior to any actions that could lead to a conflict of interest, such as showing a property listed by the same agency that represents the buyer. Obtaining this consent beforehand allows for transparency and helps prevent misunderstandings about the licensee's obligations to each party. It is a foundational step in maintaining ethical standards within real estate transactions, safeguarding the interests of both clients from the outset of the relationship. This proactive approach fosters trust and outlines the agency's responsibilities and limits within the dual agency context.