Oregon broker Elena has been working with buyer Marcus for two months under a written buyer's agency agreement. Marcus wants to make an offer on a property listed by Elena's brokerage. Elena presents the disclosed limited agency agreement to Marcus and seller Diane for signatures. Marcus signs the agreement, but Diane refuses to sign and insists Elena represent only the seller. Under Oregon law, what is the most appropriate course of action for Elena?
Correct Answer
B) Elena cannot represent both parties without both parties' written consent; she must either continue as buyer's agent only or refer one party to another licensee
Under ORS 696.840, a valid disclosed limited agency requires written informed consent from ALL parties—not just one. Because Diane refused to sign, the consent requirement is not met, and Elena cannot proceed as a disclosed limited agent. Elena must either continue to represent only Marcus as buyer's agent (with another licensee from the brokerage handling the seller's side) or refer one of the parties to a different licensee. One party's consent alone is legally insufficient.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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