Which statement is true regarding dual agency practiced by James, a Delaware licensee?

The statement that James is allowed to engage in dual agency unless consumers specifically decline it on the Consumer Information Statement (CIS) is correct. In Delaware, dual agency occurs when a single licensee represents both the buyer and the seller in a transaction. For this practice to be legal and ethical, the licensee must obtain informed consent from both parties involved. The CIS is a document that explains the dual agency relationship and requires the acknowledgment and acceptance of this arrangement by the consumers.

If consumers explicitly decline the option for dual agency on the CIS, James cannot engage in that practice, as the consent of both parties is crucial for the dual agency relationship to proceed legally. This ensures that both the buyer and seller are fully aware of the implications and possible conflicts of interest that can arise in such situations.

Ultimately, the requirement of written consent via the CIS is a protective measure intended to ensure transparency and trust in real estate transactions, allowing both parties to make informed decisions regarding their representation.