Connecticut salesperson Derek works for Harbor Realty. He is a buyer's agent helping client Stephanie search for a home. While touring a property listed by a different brokerage, Stephanie asks Derek whether he could also represent the seller in this transaction to simplify the process. Derek agrees and proceeds without obtaining any written consent. Which of the following best describes the consequence of Derek's actions under Connecticut law?
Correct Answer
B) Derek has violated Connecticut agency law by entering into an undisclosed dual agency relationship without obtaining written informed consent from both parties
Connecticut law requires that dual agency be disclosed in writing and that informed written consent be obtained from both the buyer and the seller before the dual agency relationship begins. Derek proceeded without written disclosure or written consent from either party, violating CGS § 20-325c and Connecticut agency law. This constitutes an undisclosed dual agency, which is a serious license law violation subject to disciplinary action by the CREC.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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