Broker Linda operates a real estate firm in Biloxi, Mississippi. She lists a home for seller Tom and later receives an offer from buyer Carol, whom Linda also represents as a buyer's agent. Linda discloses the dual agency situation in writing, and both Tom and Carol sign consent forms. Which of the following duties does Linda still owe to BOTH parties in this disclosed dual agency?
Correct Answer
D) Honest dealing, disclosure of material facts, and accounting for funds
Under Mississippi agency law, when a dual agency is disclosed and consented to in writing, the dual agent continues to owe both parties the duties of honest dealing, disclosure of material facts affecting the property, and proper accounting for any funds. However, the dual agent cannot provide undivided loyalty to either party, cannot disclose one party's confidential negotiating information to the other, and cannot advise either party on specific price strategy.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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