A Massachusetts broker, ABC Realty, has a listing agreement with the seller of a condo and also has a signed buyer representation agreement with a buyer who wants to purchase that same condo. ABC Realty has obtained written consent from both parties to proceed as a dual agent. Which of the following best describes a key limitation on ABC Realty's duties in this dual agency relationship?
Correct Answer
B) ABC Realty cannot disclose the seller's lowest acceptable price to the buyer or the buyer's highest offer price to the seller
Under 254 CMR 3.00 and general Massachusetts agency law, a dual agent owes duties to both parties but cannot fully advocate for either. A critical limitation is that the dual agent may not disclose confidential information that would harm either party — specifically, the seller's minimum acceptable price or the buyer's maximum willingness to pay. This preserves a basic level of fairness to both clients.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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