Sandra is a buyer working with an Arkansas licensee named Tom. Tom's brokerage has a written agency agreement with Sandra establishing Tom as her agent. Under this arrangement, Tom's brokerage owes Sandra fiduciary duties. Which type of agency relationship has been created between Sandra and Tom's brokerage?
Correct Answer
D) Buyer agency
A buyer agency relationship is created when a licensee and a buyer enter into a written agreement under which the brokerage represents the buyer's interests. Under Arkansas agency law, this relationship gives rise to fiduciary duties owed by the brokerage and its affiliated licensees to the buyer-client Sandra.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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