Teresa is a Qualifying Broker who operates a single-person brokerage in Las Cruces. She enters into a listing agreement with a seller and later receives an inquiry from an unrepresented buyer who wants to purchase the same property. Teresa has no Associate Brokers to assign to the buyer's side. If Teresa decides to assist the buyer in writing an offer while maintaining her listing agreement with the seller, which of the following correctly describes her situation under New Mexico law?
Correct Answer
D) Teresa must obtain written informed consent from both the seller and the buyer before proceeding as a dual agent in this transaction.
Under NMSA 1978, §§ 61-29-1 through 61-29-22, dual agency — including in a single-person brokerage — requires written informed consent from both parties before the relationship is established. The fact that Teresa operates alone does not exempt her from the disclosure and consent requirements. She must fully disclose the dual agency situation and obtain written consent from both the seller and the buyer before proceeding.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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