Under 254 CMR 3.00, Massachusetts recognizes several types of agency relationships that licensees may enter into with clients. Which of the following is NOT a recognized agency relationship under 254 CMR 3.00?
Correct Answer
C) Transaction brokerage, where the licensee acts as a neutral non-agent facilitator for both parties
Transaction brokerage — where a licensee acts as a neutral, non-agent facilitator for both parties without owing fiduciary duties to either — is NOT a recognized agency relationship under 254 CMR 3.00 in Massachusetts. Massachusetts law recognizes seller agency, buyer agency, dual agency, and designated agency. Some states formally recognize transaction brokerage as a distinct category, but Massachusetts does not. Licensees in Massachusetts who work with both parties must use dual agency or designated agency with proper disclosures and consent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
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