A disclosed limited agent in Oregon:
Audio Lesson
Duration: 2:34
Question & Answer
Review the question and all answer choices
Represents only the seller
An agent representing only the seller is a seller's agent with full fiduciary duties to the seller — this is the opposite of disclosed limited agency, which by definition involves representation of both parties simultaneously.
Represents both parties with limited duties and consent
Is not permitted
Disclosed limited agency is explicitly permitted and regulated under Oregon law (ORS § 696.845) — it is not prohibited. Oregon has created a detailed statutory framework specifically to allow and govern this type of dual representation.
Works only on commercial properties
Oregon's disclosed limited agency statute applies to all types of real estate transactions, including residential properties — there is no restriction limiting this agency relationship to commercial properties only.
Why is this correct?
Under Oregon Revised Statutes § 696.845, a disclosed limited agent is specifically defined as a licensee who represents both the buyer and seller in the same transaction with the written consent of both parties and with reduced fiduciary duties to each. The written consent requirement ensures that both parties knowingly and voluntarily waive their right to undivided loyalty before the agency relationship changes. Oregon's framework is distinctive in that it uses the term 'disclosed limited agent' rather than the more commonly used term 'dual agent,' but the legal concept — bilateral representation with consent and limited duties — is functionally equivalent.
Deep Analysis
AI-powered in-depth explanation of this concept
Disclosed limited agency in Oregon addresses a fundamental tension in real estate transactions: buyers and sellers both benefit from having professional representation, but in smaller markets or within the same brokerage, the same agent or firm may be the most qualified to help both parties. Oregon's disclosed limited agency framework, established under ORS Chapter 696, allows an agent to represent both parties in the same transaction but requires that both parties receive written disclosure and provide written consent before the agency relationship is modified. The 'limited duties' aspect is critical — once a disclosed limited agency is established, the agent cannot advocate fully for either party's negotiating position, cannot disclose one party's confidential information to the other, and must remain neutral. This structure attempts to preserve the benefits of professional representation while managing the inherent conflicts of dual representation.
Knowledge Background
Essential context and foundational knowledge
Oregon overhauled its real estate agency law in 1997 with the passage of the Oregon Real Estate Agency Disclosure Act, which introduced the term 'disclosed limited agent' as Oregon's specific label for what other states call dual agency. Prior to this reform, Oregon's agency law was ambiguous about when and how agents could represent multiple parties, leading to confusion and potential liability. The 1997 Act also introduced mandatory agency disclosure forms that must be provided at first substantive contact with a consumer, ensuring that buyers and sellers understand their representation rights before any relationship is formed. The written consent requirement for disclosed limited agency was a deliberate legislative choice to create a higher standard than mere verbal acknowledgment.
Podcast Transcript
Full conversation between instructor and student
Instructor
Hey there! Welcome back to our real estate license exam prep podcast. Today, we're diving into a medium difficulty question about agency law in Oregon. How are we doing today?
Student
I'm doing well, thanks! I'm looking forward to tackling this question. What's it about?
Instructor
Great! The question is about a disclosed limited agent in Oregon. Let's take a look at it: "A disclosed limited agent in Oregon:
A. Represents only the seller
B. Represents both parties with limited duties and consent
C. Is not permitted
D. Works only on commercial properties"
Student
Huh, that's an interesting one. I'm not sure what the correct answer is. Can you give me a hint?
Instructor
Absolutely. This question is testing your understanding of agency relationships in Oregon, specifically the concept of disclosed limited agency. It's important to recognize that Oregon has a unique approach to agency law.
Student
Oh, got it. So, what's the key concept here?
Instructor
The key concept is that Oregon permits a disclosed limited agent to represent both the buyer and the seller simultaneously, but with limited duties and only with full disclosure and written consent. It's not the same as traditional dual agency, but rather a specific legal framework in Oregon.
Student
That makes sense. So, why is option B the correct answer?
Instructor
Option B is correct because Oregon law specifically allows for this type of agency, where one agent represents both parties, but with limited duties and only after obtaining written consent from both parties. It's a nuanced understanding of agency law that's unique to Oregon.
Student
I see. And why are the other options wrong?
Instructor
Option A is incorrect because a disclosed limited agent doesn't just represent the seller; they represent both parties. Option C is wrong because Oregon does permit disclosed limited agency with proper consent. And option D is incorrect because this type of agency applies to both residential and commercial properties, not just commercial.
Student
Got it. That clears things up. What's a good memory technique for this?
Instructor
A helpful acronym to remember is CLAD: Consent, Limited, All Parties, Disclosure. It's a quick way to recall the key components of a disclosed limited agency in Oregon.
Student
That's a great acronym to remember. Thanks for that tip!
Instructor
You're welcome! And remember, when you see 'disclosed limited agent' in Oregon questions, think 'both parties with limited duties and consent.' It's a direct match to the correct answer pattern.
Student
Thanks for the reminder. I feel more confident about this question now. I'm ready to tackle the exam!
Instructor
Excellent! Keep up the great work, and don't forget to listen to our other episodes for more exam prep tips. We'll see you next time!
Remember the Oregon disclosed limited agent with the '3-W Rule': both parties, Written consent; agent has limited duties (no Whole advocacy); both parties are Warned in writing before it begins. Visualize an Oregon agent standing exactly in the middle of a seesaw with a buyer on one side and a seller on the other — they can't tip toward either side (limited duties) and both riders signed a waiver before getting on (written consent).
Remember that for disclosed limited agency in Oregon, you need written Consent from both parties, it creates Limited duties to All parties, and full Disclosure is required
Oregon exam questions about agency will often test whether you know the state-specific terminology — 'disclosed limited agent' is Oregon's term for dual agency, so don't be thrown off by the unfamiliar label. The three elements you must always associate with this term are: (1) represents both parties, (2) limited duties to each, and (3) written consent required — any answer choice missing one of these three elements is wrong.
Real World Application
How this concept applies in actual real estate practice
A real estate broker in Portland, Oregon has been working with a buyer client for three months searching for a home. The buyer falls in love with a listing that happens to be listed by the same broker's firm. Before proceeding, the broker must stop the transaction, provide both the buyer and the seller with a written disclosed limited agency agreement explaining the reduced duties, and obtain written signatures from both parties consenting to the arrangement. Only after both parties sign can the broker continue representing both in the negotiation — and even then, the broker cannot tell the seller that the buyer would pay more, or tell the buyer that the seller would accept less.
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