New Hampshire licensee Frank represents seller Ann under a listing agreement. Buyer's agent Chloe brings buyer Ben to view the property. After the showing, Ben tells Chloe he is not interested. Two weeks later, Ben contacts Frank directly — without Chloe — and says he has ended his relationship with Chloe and wants to make an offer through Frank. Frank wants to represent both Ann and Ben in the transaction. Which of the following correctly describes what Frank must do before proceeding?
Correct Answer
D) Frank must obtain written informed consent to disclosed dual agency from both Ann and Ben before representing both parties in the transaction
Under RSA 331-A:25-b and NH agency law, when a single licensee (or brokerage) seeks to represent both the buyer and the seller in the same transaction, a disclosed dual agency must be established. This requires Frank to provide updated Agency Disclosure Forms to both Ann and Ben and obtain their written, informed consent before proceeding. The fact that Ben ended his relationship with Chloe is irrelevant to Frank's dual agency obligation — what matters is that Frank would now be representing both sides simultaneously.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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.
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