What characterizes a limited consensual dual agent?

A limited consensual dual agent is characterized by the licensee representing both parties in a real estate transaction with prior written consent from both sides. This approach is significant because it establishes a relationship where the agent has the legal right to act on behalf of both the buyer and the seller while maintaining a level of impartiality. It requires that both parties acknowledge and agree to this dual representation, ensuring transparency and ethical conduct throughout the transaction.

By having advance written consent, the licensee can navigate potential conflicts of interest and provide guidance to both parties more effectively, as they are aware that the agent is working for both of their interests. This is crucial in setting clear expectations and obligations, contributing to a smoother transaction process.

In contrast, the other options do not adequately describe the nature of a limited consensual dual agent. For example, a licensee working independently does not involve dual representation, and acting as a sub-agent implies agency for only one party. Additionally, having exclusive rights to one party goes against the definition of dual agency since it signifies representation for just one side without the consent of both.