In New Jersey, Broker Patel's firm has a written designated agency policy. Salesperson Reyes is the designated agent for seller Wong, and salesperson Torres is the designated agent for buyer Santos in an in-house transaction. Broker Patel becomes personally involved in the negotiation because of a dispute over the repair credit. Which of the following best describes Broker Patel's agency status once she becomes directly involved?
Correct Answer
A) Broker Patel becomes a dual agent because she is the supervising broker and represents the entire firm
Under New Jersey designated agency law, the supervising broker who oversees a firm with a designated agency policy is considered to be in a dual agency relationship because the broker is responsible for both designated agents and, by extension, both clients. When Broker Patel personally intervenes in the negotiation, she is acting in her capacity as the broker of the firm — which represents both Wong and Santos. Her direct involvement does not change this dual agency status; it reinforces it. Patel must act neutrally and cannot advocate for either party.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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.
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