Broker Paul at Cedar Realty represents seller Ann. Salesperson Kim, also at Cedar Realty, has been working with buyer Dan. Dan wants to purchase Ann's property. Paul and Kim discuss the situation and decide to proceed as a designated agency arrangement. However, Paul forgets to obtain written consent from Ann before the purchase agreement is signed. Under Connecticut agency law, what is the most likely consequence of this omission?
Correct Answer
C) Paul and Kim may face license discipline for failing to comply with Connecticut's agency disclosure and consent requirements
Connecticut's agency disclosure law (CGS § 20-325c) requires licensees to obtain proper written consent when operating under a designated agency arrangement. Failure to obtain Ann's written consent before proceeding is a violation of Connecticut license law. While the purchase agreement itself may not be automatically voided (contract validity is a separate legal question), Paul and Kim are exposed to license discipline by the Connecticut Real Estate Commission, including potential fines, suspension, or other sanctions for the procedural violation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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