New Jersey salesperson Vance works for Broker Huang's firm and has been representing buyer Lily under a signed buyer representation agreement. Lily is interested in a property listed by Broker Huang's firm. Broker Huang's firm does NOT have a designated agency policy. Vance presents the dual agency disclosure to Lily, and Lily refuses to consent to dual agency. She insists that Vance continue to represent her exclusively as a buyer's agent. What is the most legally accurate description of the options available in this situation under New Jersey law?
Correct Answer
C) Lily must consent to dual agency or choose a different property; Vance cannot represent her exclusively on a property listed by his own firm without dual agency consent
This is a classic dual agency consent dilemma under New Jersey law. Because Broker Huang's firm represents the seller (through the listing) and Vance — as an agent of the firm — is representing Lily (the buyer), the firm is in an unavoidable dual agency position on this specific property. Without a designated agency policy, there is no mechanism to separate the representation. Lily cannot unilaterally override this by refusing consent. Her options are: (1) consent to dual agency and proceed with the purchase of this property, or (2) refuse dual agency and choose a different property not listed by Vance's firm. Vance cannot represent Lily exclusively on this property without dual agency consent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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