An Alberta brokerage first entered an agency relationship with a seller. Later, a buyer client of the same brokerage becomes interested in the seller's property, but the buyer and seller will not sign a transaction brokerage agreement. Unless the parties agree otherwise, what happens under Rule 59(3) of the RECA Rules?
Correct Answer
C) The brokerage keeps representing the seller and offers to treat the buyer as a customer or refer the buyer elsewhere
Rule 59(3) says that if the parties do not agree to a transaction brokerage agreement, then unless they agree otherwise the brokerage continues to represent the party with whom it first entered an agency relationship, here the seller. The brokerage then offers the other party the option of being treated as a customer or being recommended to another brokerage.
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