Under New Jersey law, dual agency occurs when a licensed real estate broker or brokerage represents which of the following?
Correct Answer
B) Both the seller and the buyer in the same real estate transaction
Under the New Jersey Real Estate License Act and NJREC regulations, dual agency arises when a single broker (or brokerage) represents both the seller and the buyer in the same transaction. This creates a conflict of interest because the agent owes fiduciary duties to both parties simultaneously, which is why disclosed, written consent from both parties is required before a dual agency relationship can be established in New Jersey.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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