A Massachusetts broker, Helen, is representing seller Greg and has listed his property for $380,000. Helen's personal friend, Victor, wants to buy the property and asks Helen to also represent him as a buyer's agent. Helen obtains written informed consent from both Greg and Victor to act as a disclosed dual agent. During the transaction, Greg asks Helen to tell him if Victor has any financing contingencies he might waive. What must Helen do?
Correct Answer
B) Decline to share Victor's confidential information and explain her dual agency limitations to Greg.
Under 254 CMR 3.00, a disclosed dual agent in Massachusetts must not disclose either party's confidential negotiating information to the other party. Victor's contingency strategy is confidential client information. Helen must decline to share it with Greg and should remind Greg that as a dual agent, she cannot advocate exclusively for either party or share confidential information. This limitation is a fundamental characteristic of dual agency that both parties consented to in writing.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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.
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