Principal Broker Williams operates a real estate brokerage in Portland. Broker Adams in her office represents seller Thompson, and Broker Baker in the same office represents buyer Johnson, who wants to purchase Thompson's property. Under Oregon law, which of the following best describes this situation?
Correct Answer
B) This is a disclosed limited agency situation because both brokers work under the same principal broker
Under Oregon law, when two brokers working under the same principal broker represent the buyer and seller in the same transaction, this creates a disclosed limited agency situation for the entire brokerage. The principal broker is considered to be representing both parties through the two brokers. Written informed consent from all parties is required under ORS 696.840, and the principal broker's duties to both clients are limited accordingly.
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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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