Agent Rachel works for a large NH brokerage and has been representing buyer clients in their search for a vacation home near Lake Winnipesaukee. Her clients find a property they love that is listed by a different agent at Rachel's same brokerage. Rachel's broker proposes that Rachel continue representing the buyers while the listing agent continues representing the seller, with both agents operating under the same supervising broker. Under NH law, how should this in-house transaction be characterized and handled?
Correct Answer
A) This constitutes disclosed dual agency at the brokerage level, requiring written informed consent from both the buyer and the seller
Under RSA 331-A:25-b, when two agents from the same brokerage represent opposite parties in a transaction, the brokerage is considered a dual agent. NH law treats this as disclosed dual agency at the brokerage level, which requires written informed consent from both the buyer and the seller. The fact that different agents represent each party does not eliminate the dual agency disclosure and consent requirement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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