Sarah is a licensed salesperson in Massachusetts who has been working with a buyer, Tom, to find a home. Tom falls in love with a property that is listed by Sarah's own brokerage. Sarah's broker wishes to have Sarah represent both Tom and the seller in this transaction. What must happen before this dual agency arrangement can proceed?
Correct Answer
D) Both Tom and the seller must provide informed written consent to the dual agency arrangement
Under 254 CMR 3.00, dual agency is permitted in Massachusetts only with the informed written consent of both the buyer and the seller. Both parties must understand the nature of the dual agency relationship and agree to it in writing before the licensee may proceed.
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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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