Under Rhode Island's Agency Disclosure Act (§ 5-20.6), all of the following statements about dual agency are accurate EXCEPT:
Correct Answer
C) Dual agency is automatically created whenever a broker's firm has a listing and one of the firm's agents shows that listing to a buyer
Dual agency is NOT automatically created simply because a buyer's agent at the same firm shows an in-house listing. Under Rhode Island law, the broker may instead elect to use designated agency, assigning separate exclusive representatives to each party. Dual agency requires intentional establishment with written informed consent from both parties — it is not an automatic legal consequence of an in-house showing.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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