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Broker Helen at Sunflower Realty in Fargo has a listing agreement with seller Greg. Buyer Maria, who is not represented by any agent, contacts Helen directly and makes an offer on Greg's property. Helen provides the required agency disclosure form to Maria, who signs it acknowledging that Helen represents Greg. Maria then asks Helen to help her understand the purchase contract terms and to negotiate on her behalf. If Helen agrees to represent Maria as well, which of the following accurately describes the requirements under North Dakota law before Helen may proceed?

Correct Answer

B) Helen must obtain written informed consent from both Greg and Maria before the dual agency begins.

Under North Dakota Administrative Code Title 70, establishing a dual agency relationship requires written informed consent from BOTH the seller (Greg) and the buyer (Maria) before the dual agency commences. The fact that Greg already has a listing agreement with Helen does not constitute consent to dual agency — that is a separate, specific consent. Maria's signing of the disclosure form acknowledging Helen as Greg's agent is also not dual agency consent; it is merely an acknowledgment of the existing single agency. Helen must obtain a new, specific written consent from both parties authorizing the dual agency.

Answer Options
A
Helen must obtain only Maria's written consent because Greg already knows Helen is his agent.
B
Helen must obtain written informed consent from both Greg and Maria before the dual agency begins.
C
Helen may proceed without additional consent because Maria signed the disclosure form acknowledging Helen's role.
D
Helen must terminate the listing agreement with Greg before she can represent Maria.

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Related Topics & Key Terms

Key Terms:

dual_agencywritten_consentlisting_agentconsent_requirements
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