If a real estate company has agency agreements with both a seller and a buyer, under what condition can the broker assist in the transaction?

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The correct answer indicates that a broker can assist in the transaction when both the seller and the buyer consent to dual agency. Dual agency occurs when a broker represents both parties in the same transaction, which can be beneficial but also requires careful handling to ensure that both parties' interests are fairly represented.

For dual agency to be permissible, it is essential that both parties fully understand the implications and agree to this arrangement. Their consent ensures that there is transparency in how the broker will manage their interests, as there may be inherent conflicts when representing both sides in a negotiation. The acknowledgment of dual agency typically needs to be documented in writing to safeguard the rights of both the seller and the buyer while complying with legal and ethical standards.

The other options, while they may seem relevant, do not properly address the fundamental requirement for dual agency. For instance, a seller paying the commission does not inherently grant permission for dual agency; similarly, merely having written agreements without explicit consent to dual agency is insufficient. Additionally, disclosing prior offers does not meet the needed condition of obtaining both parties' consent to operate under dual agency. Thus, the primary requirement for a broker to facilitate a transaction involving both a seller and a buyer under dual agency is mutual consent.

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