Missouri broker Sandra is the designated broker for Metro Realty. Salesperson Jake, affiliated with Metro Realty, is representing seller Phil in a listing. Without Sandra's knowledge, Jake also enters into a verbal buyer representation agreement with buyer Cynthia, who wants to purchase Phil's property. Jake does not inform either Phil or Cynthia of the dual representation, and he does not obtain written consent from either party. Which of the following most accurately describes the legal situation under Missouri law?
Correct Answer
D) Jake has violated Missouri law by creating an undisclosed dual agency without written consent from both parties
Jake has created an undisclosed dual agency, which is a serious violation of Missouri law. Missouri requires that dual agency be disclosed to and consented to in writing by both the buyer and the seller before the dual agency is established. Jake failed to disclose the dual representation to either Phil or Cynthia and did not obtain written consent from either party. Additionally, Jake failed to inform his broker Sandra, which violates the broker's supervisory responsibilities. This conduct is grounds for MREC disciplinary action, including possible license revocation, and may expose Jake and Sandra to civil liability under the Missouri Merchandising Practices Act.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Agency Question
Background Knowledge for Agency
Real World Application in Agency
Common Mistakes to Avoid on Agency Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
More Agency Questions
Under agency law in Nevada, dual agency is:
Under South Dakota license law, which type of agency relationship exists when a broker represents only the seller in a real estate transaction?
Oregon broker Olivia is working with buyer couple Derek and Sarah. During their first meeting, Derek and Sarah ask Olivia who she represents in the transaction. Under Oregon law, when is Olivia required to provide a written agency disclosure to Derek and Sarah?
Missouri continuing education (CE) requirements for license renewal include:
Kentucky requires how many hours of pre-license education?
- → How is implied agency most commonly created?
- → Under current Illinois agency law, which of the following statements is NOT accurate?
- → Information about the lowest price a seller will accept is:
- → New Jersey continuing education requirements include:
- → Virginia continuing education requirements for salespersons include:
- → Kansas recognizes which agency relationships?
- → An exam-prep coach in Mooresville is sorting out a file issue involving WWREA at first substantial contact. Which statement best applies under current North Carolina law?
- → Maryland real estate licensees are regulated by the:
- → NM listing agreements must include:
- → Broker Jameson operates a large brokerage in Flint, Michigan. He has established a designated agency policy in his office. Salesperson Keisha represents buyer Donna, and salesperson Liam represents seller Frank, on the same property transaction. Broker Jameson is not personally involved in showing the property or drafting the offer. Which statement BEST describes Jameson's agency status in this transaction under Michigan law?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Real Estate Exam Practice Questions by Topic (2026): Free Sets for Contracts, Agency, Financing
Get topic-based real estate exam practice sets and a simple sequence to move from learning to timed mocks.
Real Estate Exam Topics (2026): High-Yield Areas + Common Traps (Contracts, Agency, Financing, Fair Housing)
Learn the highest-frequency real estate exam topics and the traps that cause most wrong answers—plus how to study them.
Real Estate Exam Agency & Fiduciary Duties (2026): Scenarios + Practice Questions
Master agency relationships and fiduciary duties using scenario patterns and practice questions built for exam wording.