Patricia is a Qualifying Broker who runs a small brokerage in Taos. She personally lists a property for seller Miguel. Later, her Associate Broker, James, brings in a buyer who wants to purchase Miguel's property. Patricia's brokerage would now be representing both the seller and the buyer. Which of the following statements is TRUE about this situation under New Mexico law?
Correct Answer
B) The brokerage may proceed as a dual agent only after obtaining written informed consent from both Miguel and the buyer.
Under New Mexico's Brokerage Relationships in Real Estate Transactions Act (NMSA 1978, §§ 61-29-1 through 61-29-22), dual agency is permissible but requires written informed consent from both the seller and the buyer before the dual agency relationship is established. When the same brokerage represents both parties in a transaction, it is a dual agency situation regardless of which individual licensees handle each side.
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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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