New Hampshire licensee Tom works for Lakeview Realty and has been representing buyer Nora under a signed buyer representation agreement. Nora falls in love with a property listed by a different brokerage, Summit Realty. The Summit Realty listing agent, Beth, is also interested in representing Nora directly for this transaction and suggests that Nora terminate her agreement with Tom. Beth tells Nora that she can be a 'neutral facilitator' for both sides without any additional disclosure. Which of the following best describes the flaw in Beth's proposal?
Correct Answer
B) New Hampshire does not recognize 'neutral facilitator' as a valid agency category; Beth would need to establish disclosed dual agency with written consent from both parties
New Hampshire law under RSA 331-A recognizes three agency relationships: seller's agent, buyer's agent, and disclosed dual agent. 'Neutral facilitator' or 'transaction broker' is not a recognized agency category in NH. If Beth wants to represent both Nora (buyer) and the seller in this transaction, she must establish a disclosed dual agency, which requires informed written consent from both the buyer and the seller before proceeding. Simply labeling herself a 'neutral facilitator' does not satisfy NH's disclosure and consent requirements.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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