Under the RECA Rules, a brokerage practising common law agency lists a seller's home, and one of its buyer clients wants to buy that home. How must the brokerage proceed?
Correct Answer
C) Offer both a written transaction brokerage agreement; if they decline, keep the first client and treat or refer the other
Rule 59(1) of the RECA Rules lets the buyer, the seller and the brokerage enter into a written transaction brokerage agreement for that property, after the brokerage gives both a chance to review it (Rule 59(2)). If they do not agree, Rule 59(3) says the brokerage continues to represent the party it first entered an agency relationship with and offers the other party either customer status or a referral to another brokerage.
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