Sarah is a licensed salesperson in Michigan working under broker Tom. Sarah finds a buyer, Marcus, who wants to purchase a home listed by a different brokerage. Sarah's broker agrees to represent Marcus exclusively. Which type of agency relationship has been established between Sarah's brokerage and Marcus?
Correct Answer
B) Buyer agency, because Sarah's brokerage has agreed to represent Marcus's interests exclusively
When Sarah's brokerage agrees to represent Marcus exclusively as the buyer, a buyer agency relationship is established. The brokerage owes fiduciary duties to Marcus, including loyalty, confidentiality, and advocacy for his best interests. Since the property is listed by a different brokerage, there is no dual agency conflict.
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Related Topics & Key Terms
Key Terms:
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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