Sarah is a licensed associate broker at Coastal Realty in Portland, Maine. A buyer named Tom approaches her directly and asks her to help him find a home. Sarah's designated broker assigns her exclusively to represent Tom. Which type of agency relationship has been established under Maine law?
Correct Answer
A) Buyer agency
Under Maine's Real Estate Brokerage Act, when a licensee is engaged to represent a buyer exclusively in a transaction, a buyer agency relationship is established. Sarah owes Tom full fiduciary duties as his buyer's agent, including loyalty, confidentiality, disclosure, obedience, and reasonable care.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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.
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