A Massachusetts real estate salesperson, Diane, is representing seller Frank in the sale of his home. During an open house, a visitor named Henry expresses strong interest and asks Diane to help him write an offer. Diane agrees without discussing agency relationships or providing any written disclosure. Which of the following best describes the legal consequence of this situation under Massachusetts regulations?
Correct Answer
A) Diane has created an undisclosed dual agency, which violates 254 CMR 3.00 and may subject her license to disciplinary action
By agreeing to help Henry write an offer without disclosing the agency relationship or providing the required written disclosure, Diane has created an undisclosed dual agency. She already represents Frank (the seller) and is now acting on Henry's behalf without proper disclosure or written consent. This violates 254 CMR 3.00, which requires written disclosure at the first personal meeting to discuss a specific property and written consent from both parties before dual agency can proceed. Diane is subject to disciplinary action by the Board.
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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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