Sarah is a licensed salesperson in South Dakota working under Broker Tom. A buyer named Marcus contacts Sarah and asks her to help him find a home. Sarah agrees to represent Marcus exclusively as his agent. Which type of agency relationship has been established?
Correct Answer
C) Buyer agency, because Sarah is representing only the buyer's interests
Buyer agency is established when a licensee agrees to represent only the buyer's interests in a transaction. Under SDCL 36-21A, Sarah owes Marcus fiduciary duties including loyalty, confidentiality, obedience, and full disclosure of information material to the buyer's position. The agency type is determined by whom the licensee represents, not by the licensee's employment relationship with their broker.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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