Broker Nguyen's firm has a listing on a home in Worcester. Buyer Samantha contacts the firm and is assigned to salesperson Kevin, who works at the same firm. Kevin shows Samantha the listed property. The firm wishes to represent both the seller and Samantha as a buyer. Under Massachusetts law, which type of agency relationship must be disclosed and consented to in this situation?
Correct Answer
C) Designated agency, because Kevin and the listing agent are different salespersons within the same firm
Under Massachusetts regulations (254 CMR 3.00), when a brokerage firm has a listing and assigns a different salesperson within the same firm to represent the buyer on that same property, this is designated agency. The broker designates Kevin to represent Samantha and a different agent to represent the seller, allowing each party to receive representation without the full conflicts of dual agency. This relationship requires disclosure and informed written consent from both parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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