Agent Rachel in South Dakota is showing a property listed by her own brokerage to buyer client James, whom she also represents. Rachel has not obtained any written consent from either party regarding the dual representation. Which of the following best describes Rachel's situation under South Dakota law?
Correct Answer
A) Rachel is in an undisclosed dual agency, which violates South Dakota law
Under SDCL 36-21A, dual agency is permitted in South Dakota only with the written informed consent of all parties. When Rachel represents both the seller (through the listing) and the buyer (James) in the same transaction without obtaining written consent, she is engaged in undisclosed dual agency, which is a violation of South Dakota license law and grounds for disciplinary action.
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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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