Sarah is a licensed salesperson at Garden State Realty in New Jersey. A buyer named Marcus contacts the brokerage and is assigned to Sarah as his buyer's agent. Sarah's colleague at the same firm, David, has the listing for a home Marcus wants to purchase. Under New Jersey law, what type of agency arrangement does Garden State Realty most likely have with both Marcus and the seller?
Correct Answer
A) Disclosed dual agency, because the same brokerage represents both parties
In New Jersey, agency is attributed to the brokerage firm, not just to the individual licensee. When two agents within the same brokerage represent opposite sides of the same transaction, the brokerage is in a disclosed dual agency situation. Written consent from both the buyer and seller is required before the transaction can proceed under this arrangement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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