Tom is an Oregon-licensed broker representing a seller. He shows the property to an unrepresented buyer, Karen, who expresses interest in making an offer. Tom has not discussed any agency relationship with Karen. Under Oregon law, which statement best describes Tom's current relationship with Karen?
Correct Answer
A) Tom remains the seller's agent and owes Karen only the duties owed to a customer, not a client
Under Oregon agency law (ORS 696.800–696.890), a licensee who is acting as the seller's agent owes fiduciary duties to the seller as the client. An unrepresented buyer like Karen is a 'customer,' not a client. Tom owes the customer honesty and disclosure of material facts, but does not owe full fiduciary duties. Tom continues to represent the seller unless a new agency agreement is established.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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