Salesperson Olivia works for Beacon Hill Realty. She has a listing for a condo in Boston and also has a buyer client, Derek, who wants to purchase that same condo. Beacon Hill Realty wants to represent both parties in this transaction. Under Massachusetts law, what must occur before this dual agency arrangement can proceed?
Correct Answer
D) Both the seller and Derek must provide their informed written consent to the dual agency arrangement
Under 254 CMR 3.00 and Massachusetts agency law, dual agency requires the informed written consent of both the seller and the buyer before the arrangement can proceed. Both parties must understand the implications of dual agency — that the licensee cannot advocate fully for either party — and must agree to it in writing. Consent from only one party is insufficient.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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.
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