Broker Adams of Ames Realty lists a property for seller O'Brien. Agent Clark, also of Ames Realty, shows the property to buyer prospect Lee. Before discussing the property details with Lee, Agent Clark provides the required Iowa agency disclosure form. Lee decides not to sign a buyer representation agreement and does not consent to any agency relationship. Agent Clark proceeds to assist Lee in viewing the property and answering questions. What is Agent Clark's agency status with respect to Lee under Iowa law?
Correct Answer
C) Clark is a transactional facilitator with no agency relationship with either Lee or O'Brien
When Agent Clark, working for the listing brokerage (Ames Realty), assists a buyer prospect who has not signed a buyer representation agreement and has not consented to buyer agency, Clark is acting as a subagent of the listing broker, representing the seller O'Brien's interests. In Iowa, absent a buyer representation agreement or other agency arrangement, a licensee from the listing firm who assists a buyer is presumed to represent the seller. Clark must inform Lee that Clark represents O'Brien, not Lee. Iowa Code Chapter 543B and IREC rules govern this default agency status.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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