At what point is it illegal for agents to engage in dual agency?

In North Carolina, dual agency occurs when a real estate agent represents both the buyer and the seller in the same transaction. For dual agency to be legal, both parties must provide informed consent. If either party is not aware that the agent is representing both sides, it creates a conflict of interest and undermines the trust necessary for a successful transaction. Therefore, when both parties are not aware of the dual representation, it becomes illegal for agents to engage in such practices, as they are violating the requirement for transparent communication and consent.

The other choices do not accurately capture the legal stipulations regarding dual agency. Differences in commission rates do not directly affect the legality of dual agency, nor do unstable market conditions. Additionally, while a refusal of consent from either party would make dual agency illegal, the key element that makes it explicitly unlawful from the outset is the lack of awareness regarding the dual representation. Thus, the emphasis on informed consent and awareness in the context of dual agency is critical to understanding the legality of such arrangements.