Salesperson Jordan works for Broker Thompson's New Jersey firm. Jordan listed a property for seller Hernandez. Buyer Kim contacts Jordan directly and, without signing any buyer representation agreement, asks Jordan to show her the Hernandez listing. Jordan shows the property and Kim decides to make an offer. No dual agency consent has been obtained. What is Jordan's agency status with respect to buyer Kim at this point?
Correct Answer
A) Jordan is a seller's agent, and Kim is an unrepresented customer to whom Jordan owes honesty but not fiduciary duties
Under New Jersey agency law, when a listing agent assists a buyer who has not entered into a buyer representation agreement and no dual agency consent has been obtained, the listing agent remains the seller's agent. The buyer in this situation is a customer — not a client — and the listing agent owes the customer honesty, fair dealing, and disclosure of material property facts, but does not owe fiduciary duties such as loyalty, confidentiality, or undivided advocacy. Jordan must disclose to Kim that Jordan represents Hernandez, not Kim.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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