Principal Broker Angela operates a real estate firm in Portland, Oregon. One of her affiliated brokers, Marcus, represents a seller. Another affiliated broker, Diana, represents a buyer who wants to purchase Marcus's listing. Angela decides to use designated agency so that Marcus and Diana each exclusively represent their respective clients. Which statement accurately describes the written disclosure obligation in this situation?
Correct Answer
B) Angela must provide written notice to both the seller and buyer disclosing that both their agents work for the same brokerage
Under Oregon law, when a principal broker uses designated agency in an in-house transaction, the brokerage must provide written disclosure to both the buyer and seller informing them that both of their agents are affiliated with the same brokerage. This allows both parties to make an informed decision about whether they are comfortable proceeding under this arrangement. Transparency about the shared brokerage affiliation is required even when each party has a dedicated representative.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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.
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