Salesperson Rachel works for Broker Mike in Kansas. Rachel lists a property for seller Garcia and subsequently procures a buyer, Chen, who wants to purchase the same property. Rachel proposes to represent both Garcia and Chen in the transaction without disclosing this arrangement to either party. Under Kansas law and BRRETA, which of the following most accurately describes the legal status of Rachel's proposed conduct?
Correct Answer
A) Rachel's conduct violates BRRETA because undisclosed dual representation is prohibited, and written consent from both parties is required before any dual or designated agency arrangement may proceed
Under BRRETA (K.S.A. 58-30,101 et seq.), a licensee may not represent both the buyer and seller in a transaction without the written informed consent of both parties. Undisclosed dual representation is a violation of Kansas agency law. Any dual agency or designated agency arrangement requires written disclosure and consent. Rachel's proposal to represent both parties without disclosure to either is a direct violation of BRRETA and subjects her and Broker Mike to KREC disciplinary action.
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Related Topics & Key Terms
Key Terms:
Related Concepts
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
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