What is the correct answer to: A disclosed limited agent in Oregon:

The correct answer is Represents both parties with limited duties and consent. 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.

What background knowledge is needed for this Agency question?

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.

What is a good way to remember the answer to this Agency question?

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

What exam tip applies to this Agency question?

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.

How does this Agency concept apply in real world 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.

AgencyGeneralMEDIUM

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.

Answer Options

Represents only the seller

Represents both parties with limited duties and consent

Is not permitted

Works only on commercial properties

Study Infographics

Study card infographic for: A disclosed limited agent in Oregon:

Download

Why This Is the Correct Answer

Why the Other Options Are Wrong

Deep Analysis of This Agency Question

Background Knowledge for Agency

Real World Application in Agency

Common Mistakes to Avoid on Agency Questions

Related Concepts

Scope of Authority

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

Seller Agent Duties

The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.

Single Agency

A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.

Was this explanation helpful?

People Also Study

Buyer Representation Agreement

8% of exam

Property Ownership

10% of exam

Land Use Controls and Regulations

8% of exam

Valuation and Market Analysis

10% of exam

Real Estate Exam Practice Questions by Topic (2026): Free Sets for Contracts, Agency, Financing

Get topic-based real estate exam practice sets and a simple sequence to move from learning to timed mocks.

Real Estate Exam Topics (2026): High-Yield Areas + Common Traps (Contracts, Agency, Financing, Fair Housing)

Learn the highest-frequency real estate exam topics and the traps that cause most wrong answers—plus how to study them.

Real Estate Exam Agency & Fiduciary Duties (2026): Scenarios + Practice Questions

Master agency relationships and fiduciary duties using scenario patterns and practice questions built for exam wording.

Previous Question

A buyer's agent must keep confidential:

Next Question

A facilitator in Minnesota:

Agency Questions

A disclosed limited agent in Oregon:

Why This Is the Correct Answer

Why the Other Options Are Wrong

Deep Analysis of This Agency Question

Background Knowledge for Agency

Real World Application in Agency

Common Mistakes to Avoid on Agency Questions

Related Topics & Key Terms

Related Concepts

More Agency Questions

People Also Study

Related Articles

Practice More Questions