Connecticut salesperson Derek represents buyer Amanda. Amanda makes an offer on a property listed by Derek's own broker, Sunrise Realty. Derek's broker did not disclose the dual agency situation to Amanda in writing before she signed the offer. Under Connecticut law, what is the most likely consequence of this failure?
Correct Answer
A) Derek and his broker may face license discipline by the CREC and potential liability to Amanda for the undisclosed dual agency
Failure to provide the required written dual agency disclosure and obtain informed consent is a violation of CGS § 20-325c. The Connecticut Real Estate Commission (CREC) has authority to impose disciplinary sanctions — including license suspension or revocation — on licensees who fail to comply with agency disclosure requirements. Additionally, the undisclosed dual agency may expose Derek and Sunrise Realty to civil liability to Amanda for any damages she suffered as a result of the undisclosed conflict of interest. This is consistent with both CGS Chapter 392 disciplinary provisions and Connecticut's consumer protection framework under CUTPA.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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.
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