Licensed salesperson Rachel in Connecticut is showing a buyer client, Greg, several properties listed by other brokerages. At the first meeting where Rachel discussed Greg's needs and finances, she provided the state-required agency disclosure form. Greg signed it acknowledging he had received it. Later, Greg asks Rachel whether she can also show him a property listed by her own brokerage. Rachel agrees. Which agency relationship issue is MOST likely triggered by showing Greg a property listed by Rachel's own brokerage?
Correct Answer
B) A potential dual agency or designated agency situation arises, requiring updated disclosure and consent
When a buyer's agent shows a property listed by her own brokerage, the same brokerage now has a potential interest in representing both the buyer and the seller. Under Connecticut law, this triggers either a dual agency or designated agency situation. The brokerage must provide updated disclosure and obtain informed written consent from both parties before proceeding, because the original disclosure form addressed only the initial agency relationship and did not contemplate this in-house conflict.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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