Designated broker Marcus at Pine Tree Realty in Farmington, Maine operates a small office with only himself and associate broker Gwen. Seller client Helen lists her property with the firm, represented by Gwen. Buyer client Derek then approaches Marcus directly and wants Marcus to represent him in purchasing Helen's property. Marcus cannot assign a separate designated agent because Gwen is already representing the seller. Under Maine's Real Estate Brokerage Act, what is the most accurate description of the agency situation if Marcus proceeds to represent Derek?
Correct Answer
D) Marcus represents Derek as a buyer's agent, creating dual agency at the brokerage level that requires written disclosure and consent from both Helen and Derek
Under Maine's Real Estate Brokerage Act, when the designated broker personally takes on representation of the buyer while the firm already represents the seller, dual agency exists at the brokerage level. Marcus, as the designated broker, is the firm — so he cannot serve as a 'designated agent' separate from the brokerage entity. He may proceed as Derek's buyer's agent only with the informed written consent of both Helen and Derek acknowledging the dual agency. This is distinct from designated agency, which requires assigning a different licensee to each party.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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