Agent Brenda works at Mountain View Realty in Idaho. She has been representing buyer couple Allen and Rita for three months. A new listing comes to market that perfectly matches their criteria — but the listing is also held by Mountain View Realty, listed by Agent Frank. Allen and Rita want to make an offer. Brenda has NOT yet obtained written consent for limited dual agency. Which of the following actions is Brenda legally required to take before she can continue representing Allen and Rita in making an offer on this property?
Correct Answer
D) Brenda must obtain written informed consent from Allen, Rita, and the seller before the brokerage may proceed as a limited dual agent
When a buyer represented by one licensee at a brokerage wants to purchase a property listed by another licensee at the same brokerage, the firm becomes a limited dual agent. Under Idaho Code § 54-2087, written informed consent from all parties — in this case, Allen, Rita (the buyers), and the seller — is required before the brokerage may proceed in this capacity. Brenda cannot continue representing Allen and Rita in this specific transaction without first obtaining that written consent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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