Broker Maria owns a real estate firm in Worcester, Massachusetts. Licensee David, affiliated with Maria's firm, has a signed buyer representation agreement with the Nguyens. Licensee Sandra, also affiliated with Maria's firm, holds an exclusive listing on a property the Nguyens want to purchase. Broker Maria discloses the situation in writing and obtains informed consent from both parties, then designates David to represent the Nguyens and Sandra to represent the seller. Which of the following statements BEST describes Broker Maria's role and obligations in this designated agency arrangement under 254 CMR 3.00?
Correct Answer
D) Broker Maria retains supervisory responsibility over both designated agents and owes limited confidentiality duties to both parties at the brokerage level
Under 254 CMR 3.00, when a Massachusetts broker establishes a designated agency arrangement, the supervising broker retains overall supervisory responsibility for both designated agents. At the brokerage level, the broker effectively has a relationship with both parties, which means the broker owes a limited form of confidentiality to each — the broker must not disclose one party's confidential information to the other or to the designated agent representing the other side. David and Sandra each owe full fiduciary duties exclusively to their respective designated clients, but Broker Maria's role is that of a supervising broker with limited duties to both sides.
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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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