Patricia, a licensed Missouri salesperson, is representing both the buyer and the seller in the same transaction without proper disclosure or consent. The transaction closes, and the buyer later discovers Patricia represented both parties. Under Missouri law, which of the following best describes the potential consequences for Patricia?
Correct Answer
B) Patricia may face MREC disciplinary action including license suspension or revocation for undisclosed dual agency
Under RSMo § 339.750 and MREC rules, dual agency (representing both buyer and seller) is permissible in Missouri only with the informed written consent of both parties. Practicing undisclosed dual agency violates Missouri's agency disclosure requirements and constitutes grounds for MREC disciplinary action, which can include license suspension, revocation, fines, and other sanctions. Missouri takes undisclosed dual agency seriously as a breach of fiduciary duty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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