Which of the following statements is TRUE about dual agency in Kentucky?

In Kentucky, the concept of dual agency is governed by specific regulations designed to protect the interests of all parties involved in a real estate transaction. The correct statement indicates that all parties must consent to dual agency. This is essential because dual agency occurs when a single agent represents both the buyer and the seller in a transaction. To maintain transparency and uphold ethical standards, it is necessary for both parties to be fully informed and to agree to this arrangement. Consent ensures that both the buyer and seller are aware of potential conflicts of interest that may arise from having the same representative.

The requirement for consent underscores the importance of communication and trust in real estate transactions, reinforcing that each party's needs and rights are respected. This mutual agreement is also a way to maintain the integrity of the agency relationship and to comply with Kentucky's real estate laws, which seek to prevent any potential exploitation or misunderstandings.