For a seller and buyer to legally acknowledge dual agency, what must occur?

In the context of dual agency in real estate, informed written consent is essential to establish the legal acknowledgment of this arrangement between the seller and buyer. Dual agency occurs when a single agent represents both parties in a transaction. Because this situation can lead to conflicts of interest, it is critical that both parties fully understand the implications of such representation and agree to it in a formal manner.

Having informed written consent ensures that both the seller and buyer are aware of the potential complications that can arise from dual agency, including the agent’s ability to remain neutral while representing both interests. This consent must be documented to protect all parties involved and to provide a clear record that both parties understood and agreed to the arrangement. This requirement also helps in upholding the agent's legal obligations and ethical standards.

The other options do not meet the legal requirements established for dual agency. Informal agreements lack the necessary documentation and clarity, a waiver of representation rights does not fulfill the requirement of mutual acknowledgment, and a clause in the purchase agreement does not inherently imply consent to dual agency unless separate written consent is provided beforehand. Therefore, the necessity of obtaining informed written consent is fundamental for the legal acknowledgment of dual agency in North Carolina.