Which of the following statements about dual agency disclosures is correct?

The correct statement is that dual agency disclosures must be conspicuous and highlighted in bold or all caps. This requirement is in place to ensure that clients are clearly aware of the dual agency situation, which occurs when a single agent represents both the buyer and the seller in a transaction. The visibility of the disclosure is crucial, as it affects the understanding of the clients regarding potential conflicts of interest and the nature of the representation they will receive. The law emphasizes transparency in these situations, making the format of the disclosure significant.

By highlighting the dual agency disclosure in a clear and noticeable manner, it ensures that consumers can quickly recognize and comprehend the implications of the arrangement, thus protecting their rights and interests in the transaction. This clarity helps them make informed decisions about proceeding with the relationship under a dual agency scenario.