Under Massachusetts law, dual agency in a real estate transaction is lawful only if which of the following conditions is met?
Correct Answer
C) Both the buyer and seller provide informed written consent to the dual agency relationship
Under 254 CMR 3.00 and Massachusetts agency law, dual agency is lawful only when both the buyer and the seller provide informed written consent to the arrangement. The written agency disclosure form must explain the nature of dual agency, including the limitations it places on the licensee's ability to advocate fully for either party. Without this informed written consent from both parties, dual agency constitutes a breach of fiduciary duty and a violation of Board regulations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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