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Broker Linda's office in Juneau has two salespersons: Agent A represents the seller of a property listed at $450,000, and Agent B represents a buyer who wants to make an offer on that same property. Both agents work under Broker Linda. Under Alaska law, what agency arrangement is most appropriate for this situation, and what must occur before it can proceed?

Correct Answer

A) Dual agency by Broker Linda's office; written informed consent must be obtained from both the buyer and the seller

Under 12 AAC 64.060, when two licensees within the same brokerage represent opposite parties in the same transaction, the brokerage is in a dual agency situation (sometimes called in-house dual agency or designated agency depending on the brokerage's structure). Alaska law requires written informed consent from both the buyer and the seller before the transaction can proceed in this manner. Each agent may continue to represent their respective client as a designated agent, but the overall brokerage is a dual agent and must disclose this to both parties.

Answer Options
A
Dual agency by Broker Linda's office; written informed consent must be obtained from both the buyer and the seller
B
Seller's agency only; the buyer must be referred to another brokerage to avoid any conflict
C
Subagency for Agent B; Agent B automatically represents the seller because the property is listed in the office
D
Facilitator status for both agents; no consent is required when agents are in the same brokerage

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Related Topics & Key Terms

Key Terms:

dual_agencydesignated_agencyin_house_transactionwritten_consentbroker_supervision
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