Broker Linda's brokerage has been engaged by both the seller and the buyer in the same residential transaction. Linda has obtained written informed consent from both parties to proceed. Under Nevada law, what is the term for this agency relationship, and what key limitation applies to Linda's duties in this situation?
Correct Answer
A) Dual agency; Linda owes reduced fiduciary duties and may not disclose confidential information of either party without consent
Under NRS 645.252(3), when a Nevada broker represents both the buyer and seller in the same transaction with written informed consent from both parties, the relationship is called dual agency. In this role, the broker owes reduced fiduciary duties — specifically, the broker cannot disclose the seller's lowest acceptable price to the buyer, cannot disclose the buyer's highest acceptable price to the seller, and cannot advocate exclusively for either party. Written consent is mandatory before the dual agency relationship may begin.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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