What disclosure obligation does a broker have when the brokerage will act as a dual agent in a transaction?

When a brokerage represents both buyer and seller in the same transaction (dual agency), the broker must disclose this relationship to both parties and obtain their informed, written consent, usually before or at the time the conflict arises. The brokerage must then act impartially and may not reveal one party's confidential information — such as how high a buyer will go or how low a seller will accept — to the other. Many firms manage this through designated agency instead. Because the broker is responsible for the firm's agency practices, failing to disclose and obtain consent for dual agency is a significant violation that the broker exam emphasizes.