Salesperson Linda represents a buyer, Carl, who is interested in purchasing a property listed by Linda's own broker, Broker Wilson. Under New Jersey law, this situation creates what type of agency relationship, and what must occur before Linda can proceed?
Correct Answer
A) A disclosed dual agency; both the seller and Carl must provide written informed consent
When a salesperson's broker holds the listing and the salesperson is working with a buyer interested in that same listing, the brokerage is representing both the seller and the buyer—creating an in-house dual agency situation. Under New Jersey law (N.J.A.C. 11:5-6.9), this is a disclosed dual agency, and both the seller and the buyer must provide written informed consent before the dual agency can proceed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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