Elena is an Associate Broker whose brokerage has a listing agreement with the seller of a home in Santa Fe. A buyer who has no agent contacts Elena directly and asks her to help him purchase the same property. Elena's Qualifying Broker agrees to allow her to assist the buyer. Which agency relationship status would BEST describe Elena's role if she proceeds to assist both the seller and the unrepresented buyer in this transaction?
Correct Answer
C) Dual agent, because she would be representing both the seller and the buyer in the same transaction
Under New Mexico's Brokerage Relationships in Real Estate Transactions Act (NMSA 1978, §§ 61-29-1 through 61-29-22), when a licensee or brokerage represents both the seller (through a listing agreement) and the buyer in the same transaction, this creates a dual agency relationship. Dual agency is permissible in New Mexico but requires informed written consent from both parties before it is established.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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.
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