Broker Sandra's firm listed a property in Cambridge. Before any buyer's agent was involved, a prospective buyer, Michael, visited the property and toured it with Sandra. Sandra provided Michael with the agency disclosure form showing she represents the seller. Michael later decided to purchase the property without a buyer's agent, relying on Sandra to facilitate the transaction. What is the most accurate description of Sandra's agency relationship with Michael in this situation?
Correct Answer
B) Sandra remains the seller's agent and Michael is an unrepresented buyer, with Sandra owing Michael only honesty and disclosure of material facts
Option B is correct. Sandra disclosed that she represents the seller, and Michael did not enter a buyer-agency relationship. Sandra therefore remains the seller's agent while Michael is an unrepresented buyer. Sandra must deal honestly and disclose known material facts, but she does not become Michael's buyer's agent or a dual agent merely because she assists with the transaction. Dual agency would require her to represent both parties and obtain informed written consent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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