2.2 Dual Agency and Consent to Act
Key Takeaways
- Dual agency is legal in Nevada but the licensee must obtain the signed "Consent to Act" form (NRD form 527) from BOTH parties before acting for both
- The Consent to Act form must describe the transaction, state the licensee represents parties with adverse interests, and acknowledge the conflict of interest
- A dual agent may NOT reveal either party's bottom-line price, motivation, or negotiating strategy, and may not advocate for one side over the other
- Two licensees in the same brokerage on opposite sides create dual agency at the brokerage level even with designated/appointed agents
- Compensation received from more than one party must be disclosed in writing and consented to before services are provided
When Dual Agency Arises
Dual agency exists whenever a single brokerage represents both the buyer and the seller in the same transaction. Because the brokerage is the agent in Nevada, this happens in two situations the exam loves to contrast:
| Situation | Dual agency? |
|---|---|
| One licensee represents both buyer and seller | Yes |
| Two licensees in the SAME brokerage, one per side | Yes (brokerage level) |
| Licensee at Brokerage A (seller) + licensee at Brokerage B (buyer) | No — two single agents |
The statutory trigger is NRS 645.252(3): when a licensee is acting for more than one party, the licensee must disclose that fact and obtain each party's written consent before continuing to act.
The Consent to Act Form (NRD Form 527)
Nevada uses a prescribed "Consent to Act" form. It is separate from the Duties Owed form and is required only when dual agency is present. It must be signed before the licensee proceeds.
Required Contents
| Required element | Why it matters |
|---|---|
| Description of the transaction/property | Identifies the specific deal being consented to |
| Statement that the licensee represents parties whose interests are adverse | Names the conflict plainly |
| Acknowledgment that a conflict of interest exists | Informed consent, not blanket waiver |
| Confirmation that confidential information will NOT be disclosed | Protects both bottom-line prices |
Signatures
All three sign: the buyer, the seller, and the licensee/brokerage. If either party refuses to sign, the licensee may not act as a dual agent and must either refer one side out or withdraw from representing one party.
Trap: The Consent to Act form is NOT a waiver of liability and does NOT let the agent share confidential numbers. A stem offering "a waiver of all liability" or "the commission amount" as the required content is wrong.
What a Dual Agent May and May Not Do
A dual agent must stay neutral. The line between permitted and prohibited conduct is a heavy exam target.
| PROHIBITED in dual agency | PERMITTED in dual agency |
|---|---|
| Disclose the buyer's maximum price | Provide comparable sales / market data |
| Disclose the seller's lowest acceptable price | Prepare contracts and required disclosures |
| Reveal either party's motivation or strategy | Present all written offers fairly |
| Advocate or negotiate for one side | Facilitate communication between parties |
Worked scenario: a dual agent learns the seller would accept $390,000 but listed at $415,000. The buyer offers $400,000 and asks the agent, "Will they take less?" The agent must decline to reveal the seller's floor and may only present the buyer's offer and objective market data. Coaching the buyer to bid lower would breach neutrality.
Assigned (Designated/Appointed) Agency
Many Nevada brokerages use assigned agency: the broker designates one licensee to represent the seller and a different licensee to represent the buyer. Each assigned licensee can advocate for and keep confidences for their own client.
| Feature | Effect |
|---|---|
| Listing licensee assigned to seller | Full single-agent advocacy for seller |
| Buyer licensee assigned to buyer | Full single-agent advocacy for buyer |
| The broker over both | Remains a dual agent of the brokerage |
Note: Even with assigned agents, the brokerage is still in dual agency, so the Consent to Act form is still required from both parties. Assignment improves advocacy; it does not erase the disclosure obligation.
Disclosed Dual Agency: the Six-Step Process
- Recognize the brokerage represents both sides.
- Disclose the dual agency to both parties.
- Provide the Consent to Act form to both.
- Obtain written, signed consent from both.
- Proceed only after both have consented.
- Maintain neutrality through closing.
Multiple-Party Compensation
If the licensee will be paid by more than one party (e.g., commission from both buyer and seller, a referral fee, or a lender/title incentive), NRS 645.254 requires the licensee to disclose the compensation in writing and obtain written consent before providing services. Undisclosed double-dipping is a license-discipline issue.
Refusal and Withdrawal
Dual agency is voluntary for the consumer. If either party declines to sign the Consent to Act form, the licensee cannot serve both. The practical fixes are: (1) refer one party to an outside brokerage, (2) the brokerage represents only one side and treats the other as an unrepresented customer, or (3) withdraw entirely. The licensee may never simply 'proceed quietly' as a dual agent without signed consent — doing so is an unconsented dual agency and a disciplinary violation.
Disclosed vs. Undisclosed Dual Agency
| Type | Status |
|---|---|
| Disclosed, with signed Consent to Act | Legal in Nevada |
| Undisclosed (no consent obtained) | Illegal; grounds for discipline and rescission |
| Disclosed but only one party consented | Not permitted to act for both |
Worked timing example: the listing agent's own buyer wants to write an offer on the agent's listing. The agent must STOP, explain dual agency, deliver the Consent to Act form, and collect signatures from both the seller and the buyer before drafting the offer. Drafting first and disclosing later does not cure the defect because the statute requires consent before continuing to act. Remember that the Consent to Act form supplements, and does not replace, the Duties Owed form — in a dual-agency deal both forms are in the file.
Which element must appear on a Nevada Consent to Act form for dual agency?
Acting as a dual agent in Nevada, which information may the licensee disclose?
Two salespeople in the SAME Nevada brokerage represent the buyer and the seller in one deal. What relationship results?