Broker Walsh in Sitka is the designated broker of a small brokerage with only one other licensee, Agent Kim. Agent Kim is the buyer's agent for a client purchasing a property that is listed by Broker Walsh as the seller's agent. There are no other licensees in the brokerage. Under Alaska law, what is the most accurate description of the agency situation, and what action is required?
Correct Answer
A) The brokerage is in a dual agency situation; both Broker Walsh and Agent Kim must obtain written informed consent from both the buyer and the seller before proceeding
Under 12 AAC 64.060, when two licensees within the same brokerage represent opposite parties in the same transaction, the brokerage as a whole is in a dual agency position. In a small brokerage with only two licensees — the designated broker and one salesperson — this in-house dual agency situation requires written informed consent from both the buyer and the seller before the transaction can proceed. The fact that different individuals represent each party does not eliminate the brokerage-level dual agency; it may be structured as designated agency within the dual agency framework, but consent is still mandatory.
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Previous Question
Agent Olsen represents a seller in Nome. A buyer working without representation approaches Agent Olsen and signs an agreement confirming he is a customer, not a client. During negotiations, the buyer asks Agent Olsen: "Is the seller willing to come down on price?" Agent Olsen knows the seller has said privately she will accept $20,000 less than the listing price. Under Alaska agency law, what is Agent Olsen's correct course of action?
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Under Alabama law, which term specifically describes the agency relationship in which a licensee represents both the buyer and the seller in the same transaction with the written informed consent of all parties?