Connecticut salesperson Paul is representing a buyer. The seller's broker, without Paul's knowledge, includes a clause in the purchase agreement stating that Paul's buyer waives all agency protections. Paul's buyer signs the agreement. Paul later discovers the clause. Under Connecticut law, which of the following most accurately describes the effect of this clause and any resulting disciplinary implications?
Correct Answer
B) The waiver clause is likely unenforceable as against public policy, and the seller's broker may face CREC disciplinary action for including it
Under CGS § 20-325c and Connecticut agency law, a buyer's statutory agency protections cannot be unilaterally waived by a clause inserted by the opposing party's broker. Such a clause is contrary to the public policy underlying Connecticut's mandatory agency disclosure and protection framework. The seller's broker's act of inserting a clause designed to strip the buyer of agency protections without proper dual agency consent procedures constitutes deceptive and improper conduct subject to CREC disciplinary action.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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