Sarah is a licensed Montana real estate salesperson working under broker Tom. Sarah shows a property listed by Tom's brokerage to a buyer named Mike, and Mike decides to make an offer. Tom's brokerage now represents both the seller and the buyer in the same transaction. Under Montana law, what type of agency relationship has been created?
Correct Answer
D) Dual agency
Under MCA Title 37, Chapter 51, when a Montana brokerage represents both the seller (through the listing) and the buyer (through the buyer's agent) in the same transaction, a dual agency relationship is created. Dual agency requires the informed written consent of both the buyer and the seller before it can proceed. The broker owes limited fiduciary duties to both parties in this situation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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