Broker Arceneaux represents the seller of a Baton Rouge home. A buyer who is unrepresented submits an offer through Broker Arceneaux. The buyer has not signed any agency or transaction brokerage agreement. Broker Arceneaux facilitates the transaction and assists the buyer with paperwork. Under Louisiana law, which of the following MOST accurately describes Broker Arceneaux's legal status with respect to the buyer?
Correct Answer
A) Arceneaux is the seller's agent, and the buyer is an unrepresented customer receiving ministerial assistance.
Under Louisiana law, Broker Arceneaux has a listing agreement with the seller and therefore represents the seller as a seller's agent. The buyer, having signed no agency or transaction brokerage agreement, is an unrepresented customer—not a client. Arceneaux may provide ministerial acts (such as assisting with paperwork) to the buyer without creating an agency relationship, as long as she clearly maintains her role as the seller's agent and provides required disclosures about her agency status.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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