Broker Malia in Hawaii represents both the seller and the buyer in the same transaction without designating separate agents for each party. Both the seller and the buyer have provided their informed written consent to this arrangement. What type of agency relationship has Malia established?
Correct Answer
B) Dual agency
Dual agency exists when a single licensee or broker represents both the buyer and the seller in the same transaction. Under Hawaii Administrative Rules Title 16, Chapter 99, dual agency is permissible only with the informed written consent of both parties. In dual agency, the licensee's fiduciary duties to each client are limited because the agent cannot fully advocate for one party without compromising the other.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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