Agent Nora in Bozeman, Montana is representing seller Greg in the sale of his home. Buyer Kevin, who is unrepresented, contacts Nora directly and wants to purchase the property. Kevin asks Nora if she can represent him as well. Nora agrees without obtaining written consent from Greg. Under Montana law, which of the following best describes the problem with Nora's agreement?
Correct Answer
B) Nora has created an undisclosed dual agency, which violates Montana license law.
Under MCA Title 37, Chapter 51, dual agency in Montana requires the informed written consent of both the buyer and the seller before it can be established. By agreeing to represent Kevin without first obtaining Greg's written consent, Nora has created an undisclosed dual agency, which is a violation of Montana license law and subjects her to disciplinary action, potential loss of license, and civil liability.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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.
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