What does the term "informed consent" refer to in the context of dual agency?

In the context of dual agency, "informed consent" refers to the understanding and acknowledgment by all parties involved in a transaction regarding the implications of shared representation. In dual agency, a single agent represents both the buyer and the seller in a real estate transaction. This relationship can lead to conflicts of interest, as the agent must balance the differing interests of both clients.

For informed consent to be valid, both parties must fully understand how dual agency operates, including the limitations on the agent's ability to disclose certain information and the potential impact on negotiations. This ensures that both the buyer and the seller are aware of their rights and the nature of the representation they are receiving, enabling them to make educated decisions throughout the transaction process.

The other choices do not capture the essence of informed consent in this specific context. Agreement on commission rates primarily involves the financial aspect of the transaction, while consent to waive inspections and acceptance of alternative conflict resolution are unrelated to the core principle of dual agency and the need for both parties to understand the consequences of having a single agent represent them.