A broker secretly represents both sides of the same sale but tells each party that only one client is being represented. What is this violation called?
Correct Answer
B) Undisclosed dual agency
Undisclosed dual agency is correct because the facts match dual representation without the disclosure and consent required by law, a serious agency violation. That is the best description of the relationship, right, or legal concept tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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A listing agreement creates an agency relationship between:
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Previous Question
A listing agent receives an earnest money check and, without telling the seller, deposits it into a personal savings account to earn interest before transferring it. What undisclosed financial benefit has the agent gained?
Next Question
A broker properly discloses the intent to represent both the buyer and seller and obtains written consent from both parties before proceeding. What role does the broker hold in this transaction?