Licensee Robert is a seller's agent for a Brookline property listed at $1,200,000. Buyer Gina, who is unrepresented, asks Robert to write an offer on her behalf. Robert explains that he represents the seller and asks Gina to sign the agency disclosure form acknowledging she is a customer, not a client. Under Massachusetts agency law, which of the following best describes Robert's duties to Gina as an unrepresented customer?
Correct Answer
B) Robert owes Gina honesty and disclosure of material facts but does not owe her fiduciary duties
Under Massachusetts agency law and 254 CMR 3.00, a seller's agent owes the seller full fiduciary duties (loyalty, confidentiality, obedience, disclosure, reasonable care, and accounting). However, to unrepresented customers (non-clients), the licensee owes duties of honest dealing and disclosure of material facts affecting the property, but does not owe fiduciary duties. Robert must be honest with Gina and disclose known material defects, but his primary loyalty remains with the seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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.
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