Under Montana law, which of the following agency relationships requires the informed written consent of all parties involved before the licensee may proceed?
Correct Answer
B) Dual agency, because both the buyer and seller must consent to shared representation
Under MCA Title 37, Chapter 51, dual agency is the relationship that specifically requires the informed written consent of both the buyer and the seller before the licensee may proceed. This requirement exists because dual agency creates an inherent conflict of interest — the agent cannot fully advocate for either party — and Montana law requires both parties to understand and accept this limitation before dual agency is established.
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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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