Broker Celeste represents both the seller and the buyer in the same transaction involving a home in New Orleans. The seller agreed to dual agency in the listing agreement signed two months ago. The buyer verbally agreed to dual agency at their first meeting. Under Louisiana law, is this dual agency arrangement properly disclosed and consented to?
Correct Answer
C) No, because Louisiana requires written informed consent from both the buyer and the seller for dual agency
Under Louisiana law and LREC regulations, dual agency is permissible only with the written informed consent of both the buyer and the seller (La. R.S. 37:1467 and LREC rules). The buyer's verbal agreement does not satisfy the written consent requirement. Both parties must provide written acknowledgment that they understand the limitations of dual agency representation before the broker may proceed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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.
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