In dual agency situations, what factor is crucial for representation to be legal?

In dual agency situations, informed consent from all parties involved is crucial for the representation to be legal. This requirement ensures that both the buyer and seller understand the nature of the dual agency relationship and the potential implications for their interests. Informed consent implies that each party is fully aware of the dual agent's role in representing both sides, which can create potential conflicts of interest. By obtaining this consent, the agent demonstrates transparency and upholds ethical standards in real estate practice.

When all parties provide informed consent, they acknowledge that the agent will be working for both the buyer and the seller simultaneously, which can complicate negotiations and representation. This consent is a safeguard that helps protect the rights and interests of everyone involved in the transaction, ensuring that no party is misled about the agent's responsibilities.

The other choices do not align with the requirements for legal representation in dual agency situations, as they either suggest conditions that do not hold weight in real estate law or focus on aspects that are not essential for lawful practice in dual agency scenarios.