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AgencyDual_agencyHARD

Salesperson Nina in Massachusetts has been representing buyer Mark under a buyer representation agreement. Mark decides to purchase a property listed by Nina's own firm. The broker informs Mark that the firm will be acting as a dual agent. Mark refuses to sign the dual agency consent form, insisting on exclusive buyer representation. Under Massachusetts law, what is the most appropriate course of action?

Correct Answer

A) The broker should consider designating a different salesperson at the firm to represent the seller, allowing Nina to continue as Mark's exclusive buyer's agent

When a buyer refuses to consent to dual agency, the brokerage cannot proceed as a dual agent. However, under 254 CMR 3.00, the broker has the option of using designated agency — assigning a different salesperson within the firm to represent the seller exclusively, while Nina continues to represent Mark exclusively. This resolves the conflict without forcing dual agency on an unwilling buyer and without requiring Nina to withdraw.

Answer Options
A
The broker should consider designating a different salesperson at the firm to represent the seller, allowing Nina to continue as Mark's exclusive buyer's agent
B
Nina must withdraw from representing Mark, and the seller's agent at the firm will handle both sides of the transaction
C
Mark must accept the dual agency arrangement because Massachusetts law requires buyers to cooperate when the listing is held by their own brokerage
D
The broker may proceed with the transaction as a dual agent because the buyer representation agreement supersedes the need for dual agency consent

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Related Topics & Key Terms

Key Terms:

dual_agencydesignated_agencybuyer_consent254_CMR_3

Related Concepts

An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.

The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

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