What is informed written consent used for in real estate transactions?

Informed written consent is a crucial component in real estate transactions because it provides the necessary permission for a licensee to act as a dual agent. A dual agent represents both the buyer and seller in the same transaction, which can lead to potential conflicts of interest. Therefore, obtaining informed written consent ensures that all parties involved are fully aware of the dual agency and agree to it, understanding the implications for their representation. This consent helps to maintain transparency and trust in the relationship between the licensee and the clients, while also complying with legal requirements.

The other options do not accurately reflect the purpose of informed written consent. While a licensee can represent a seller or have oversight in representing clients, those scenarios do not inherently require the specific informed written consent that dual agency does. Similarly, confirming the sale price of a property is a part of the transaction process, but it does not relate to the need for mutual consent regarding representation. Thus, the role of informed written consent is fundamentally tied to the unique dynamics of dual agency scenarios in real estate.