Salesperson Greg at Metro Realty in Massachusetts has been showing properties to buyer Lisa for three weeks under a signed buyer representation agreement. Lisa wants to make an offer on a property listed by a different brokerage. Greg submits the offer on Lisa's behalf. In this transaction, what is the agency relationship between Greg and Lisa?
Correct Answer
D) Buyer agency, because Greg exclusively represents Lisa's interests under a signed buyer representation agreement
Greg represents Lisa as a buyer's agent under a signed buyer representation agreement. Because the property is listed by a different brokerage, there is no in-house conflict and no dual agency. Greg owes Lisa full fiduciary duties — loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting — and exclusively advocates for Lisa's interests. This is a straightforward buyer agency relationship.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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