When can a sales associate be designated to represent both a buyer and seller?

A sales associate can be designated to represent both a buyer and seller, known as dual agency, only when all parties involved have provided informed consent to the arrangement. The scenario presented in option B suggests that this situation emerges when the buyer and seller possess significant assets, specifically $1 million or more. The intent behind this option is to imply that high-net-worth individuals may have the sophistication and understanding of the implications of dual agency, therefore being more likely to consent to such an arrangement.

However, the ability to represent both parties is not solely dependent on asset levels but instead centers on proper disclosure and consent. In real estate transactions, it is crucial that both the buyer and seller understand the potential conflicts of interest arising from dual agency and agree to it explicitly. Without this consent, the sales associate cannot ethically or legally act for both parties, regardless of their financial standing.

Ultimately, the requirement lies in the necessity for informed consent rather than the specific financial threshold mentioned in option B. In actual practice, sales associates should adhere to state laws, which typically mandate clear communication and agreement from both parties in any dual agency scenario.