Broker Maria at Newport Realty represents both the seller, James, and the buyer, Linda, in the same transaction without designating separate agents for each. Under Rhode Island law, what type of agency relationship exists, and what is the key requirement for it to be lawful?
Correct Answer
B) Dual agency; Maria must obtain written informed consent from both James and Linda
Under R.I. Gen. Laws § 5-20.6, when a single licensee represents both the buyer and seller in the same transaction, this constitutes dual agency. Rhode Island law requires written informed consent from BOTH parties for dual agency to be lawful. Verbal consent alone is insufficient.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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