Vermont's Dual Agency Prohibition: What the Exam Actually Tests

Vermont's Dual Agency Prohibition: What the Exam Actually Tests

Vermont's prohibition on dual agency is one of its most distinctive real estate rules, and it shows up repeatedly across the state's Jurisprudence Exam.

What's prohibited

Unlike most states, which permit dual agency with informed written consent from both parties, Vermont does not allow a single licensee to represent both the buyer and seller in the same transaction as a dual agent. This is treated as a prohibited practice, not just a disclosure-and-consent scenario.

What's required instead: Designated Agency

When a brokerage firm represents both a buyer and seller active in the same market, Vermont requires designated agency: the firm designates two different licensees to represent each party separately, each maintaining full duties to their own client, rather than one licensee splitting reduced duties between both.

Non-Designated Agency Firms

Vermont's exam also tests the specific obligations of "Non-Designated Agency Firms" — firms that haven't set up designated agency — including protecting client confidences from disclosure to third parties (except with authorization from all affected clients) and submitting all offers regardless of amount, with or without a deposit.

Consent to designated agency showings

Vermont requires specific consent mechanics: consent to designated agency showings can be obtained within the listing agreement and buyer agency agreement through separate, dated signatures of the seller and buyer.

Sample exam concepts (based on Vermont's own released questions)

A Vermont brokerage firm represents both buyers and sellers in the marketplace. It cannot simply have one licensee act as a dual agent for both parties in the same transaction — it must either designate separate licensees to represent each party, or otherwise structure the relationship as a non-designated agency firm with its own specific disclosure and offer-handling obligations.

Why this matters for your career

Practicing dual agency in Vermont when it isn't permitted isn't a minor technical violation — it's a prohibited practice that can trigger real disciplinary consequences. The exam tests this heavily because it's one of the clearest, most consequential ways Vermont's agency law differs from what a licensee might assume based on national norms.

This topic alone generates several state-portion questions.

Our Vermont question bank has dozens of questions on this exact topic, each with a full explanation.

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