Nevada salesperson Karen is working with buyer clients, the Nguyens, who are interested in a property listed by Karen's own broker. Karen has not yet disclosed the potential dual agency situation. The Nguyens submit an offer through Karen. Which of the following best describes the legal consequence of Karen's failure to disclose the limited dual agency?
Correct Answer
D) The Nguyens may have grounds to rescind the transaction and Karen may face disciplinary action by NRED
Under NRS 645.255 and NRS 645.633, failure to obtain written informed consent before acting as a limited dual agent is a violation of Nevada license law. The aggrieved party (the Nguyens) may have grounds to rescind or void the transaction due to the undisclosed conflict of interest. Additionally, Karen and her broker may face disciplinary action by the NRED, including license suspension, revocation, or fines under NRS 645.630.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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