Key Takeaways
- Dual agency in Nevada requires written disclosure and consent BEFORE acting for both parties
- The Consent to Act form must describe the transaction and acknowledge the conflict of interest
- In dual agency, the licensee cannot disclose confidential information from either party
- Dual agency limits the agent's ability to advocate for either party's interests
- Both parties must sign the Consent to Act form before the licensee can proceed
Dual Agency and Consent to Act
Nevada permits dual agency but requires strict compliance with disclosure and consent requirements under NRS 645.252.
When Dual Agency Occurs
Dual agency exists when:
| Situation | Result |
|---|---|
| Single licensee represents both buyer and seller | Dual agency |
| Two licensees in SAME brokerage represent buyer and seller | Dual agency (brokerage-level) |
| Licensee from Brokerage A represents seller; Licensee from Brokerage B represents buyer | NOT dual agency |
Consent to Act Requirements
When Consent is Required
A licensee must obtain written consent before acting as a dual agent:
NRS 645.252: If a licensee makes a disclosure that they are acting for more than one party, they must obtain the written consent of each party before continuing to act.
What the Consent Form Must Include
| Required Element | Description |
|---|---|
| Transaction description | Identifies the specific property and transaction |
| Conflict statement | States that licensee represents parties with adverse interests |
| Conflict acknowledgment | Acknowledges the licensee has a conflict of interest |
| Confidentiality statement | Confirms confidential information will not be disclosed |
Signatures Required
| Party | Signature Required? |
|---|---|
| Buyer | Yes |
| Seller | Yes |
| Licensee | Yes |
Limitations of Dual Agency
When acting as a dual agent, a licensee CANNOT:
| Prohibited Actions | Reason |
|---|---|
| Disclose buyer's maximum price | Confidential information |
| Disclose seller's minimum price | Confidential information |
| Advise one party over another | Conflict of interest |
| Advocate for either party | Must remain neutral |
What Dual Agents CAN Do
| Permitted Actions | Description |
|---|---|
| Provide factual information | Market data, comparable sales |
| Prepare documents | Contracts, disclosures |
| Facilitate communication | Between parties |
| Present all offers | To seller fairly |
Disclosed Dual Agency Process
Step-by-Step Process
- Recognize the dual agency situation exists
- Explain the dual agency relationship to both parties
- Provide the Consent to Act form to both parties
- Obtain written signatures from both parties
- Proceed only after both parties consent in writing
- Maintain neutrality throughout the transaction
Brokerage-Level Dual Agency
When two different licensees in the same brokerage represent buyer and seller:
| Aspect | Requirement |
|---|---|
| Disclosure | Required to both parties |
| Consent | Required from both parties |
| Broker supervision | Broker must ensure compliance |
| Agent conduct | Each agent advocates for their client |
Appointed Agency (Designated Agency)
Some Nevada brokerages use appointed agency (also called designated agency):
| Feature | Description |
|---|---|
| Listing agent | Represents seller exclusively |
| Buyer's agent | Represents buyer exclusively |
| Broker | Becomes the dual agent |
| Benefit | Allows agents to fully advocate for their clients |
Note: Even with appointed agency, the brokerage has a dual agency relationship with both parties.
Compensation Disclosure
If a licensee will receive compensation from more than one party:
| Requirement | Details |
|---|---|
| Disclosure | Must disclose in writing |
| Timing | Before providing services |
| Consent | Written consent required |
Examples Requiring Disclosure
- Receiving commission from both buyer and seller
- Receiving referral fees from third parties
- Receiving compensation from lender, title company, etc.
What must be included in a Nevada Consent to Act form for dual agency?
In a dual agency situation in Nevada, what information can the licensee disclose?
When two agents from the SAME brokerage represent buyer and seller, what type of agency exists?