A disclosed limited agent in Oregon:
Correct Answer
B) Represents both parties with limited duties and consent
A disclosed limited agent represents both parties with limited duties and requires written consent.
Why This Is the Correct Answer
Option B is correct because Oregon law specifically permits disclosed limited agency where one agent represents both buyer and seller, but with limited duties to each party, and only after obtaining written consent from both parties to this limited representation arrangement.
Why the Other Options Are Wrong
Option A: Represents only the seller
Option A is incorrect because a disclosed limited agent represents both parties, not just the seller. This misconception fails to recognize the dual nature of this specific agency relationship permitted in Oregon.
Option C: Is not permitted
Option C is incorrect because Oregon specifically permits disclosed limited agency with proper consent. This misconception stems from confusion with states that prohibit dual agency entirely.
Option D: Works only on commercial properties
Option D is incorrect because disclosed limited agency applies to both residential and commercial properties in Oregon, not exclusively commercial properties. This limitation doesn't exist in Oregon's regulations.
Deep Analysis of This Agency Question
This question tests your understanding of agency relationships in Oregon, specifically the concept of disclosed limited agency. In real estate practice, agency relationships form the foundation of an agent's legal and ethical obligations to clients. The question challenges students to recognize that Oregon permits a unique agency relationship where one agent can represent both buyer and seller simultaneously, but with limited duties and only with full disclosure and written consent. This concept is particularly important in Oregon as it differs from many states where dual agency is prohibited. The question requires understanding that 'disclosed limited agent' is not the same as traditional dual agency, but rather a specific Oregon legal framework. The challenge lies in recognizing the terminology specific to Oregon's regulations and understanding that limited representation does not mean no representation at all, but rather modified fiduciary duties to both parties.
Background Knowledge for Agency
Disclosed limited agency in Oregon is a specific regulatory approach to dual representation. Most states either prohibit dual agency entirely or permit it with certain limitations. Oregon's approach allows for limited representation of both parties when full dual agency would create conflicts of interest. This framework requires written consent from both parties and modifies the agent's fiduciary duties to each client. The concept emerged as a way to facilitate transactions where buyers and sellers might prefer to work with the same agent or brokerage, while still providing some level of protection for both parties. Oregon Revised Statutes Chapter 696 specifically addresses these agency relationships and disclosure requirements.
Memory Technique
acronymCLAD - Consent, Limited, All Parties, Disclosure
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
Exam Tip for Agency
When seeing 'disclosed limited agent' in Oregon questions, immediately think 'both parties with limited duties and consent' - this phrase directly matches the correct answer pattern.
Real World Application in Agency
Imagine a buyer and seller who both want to work with the same popular real estate agent in Portland. The agent explains Oregon's disclosed limited agency option: they'll represent both parties but with limited duties to each, including limited confidentiality. After explaining the arrangement and potential conflicts, the agent obtains written consent from both parties. The agent can facilitate the transaction while still providing basic services to both clients, such as presenting offers and coordinating inspections, but cannot disclose one party's bottom line or strategy to the other without permission.
Common Mistakes to Avoid on Agency Questions
- •Confusing disclosed limited agency with traditional dual agency and assuming it's prohibited
- •Misunderstanding the concept of 'limited duties' and thinking it means no representation at all
- •Overlooking the critical requirement for written consent from both parties
- •Assuming this agency relationship type applies only to commercial properties
Related Topics & Key Terms
Related Topics:
Key Terms:
More Agency Questions
A fiduciary relationship exists between:
Which duty requires an agent to keep the principal informed of all material facts?
Dual agency occurs when:
An agent who exceeds the authority granted by the principal:
A broker who represents both the buyer and seller in the same transaction without the knowledge and consent of both parties is practicing:
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