Brandon is a principal broker at Summit Real Estate in Ogden. His brokerage has a listing for a property in Weber County. Buyer Carla contacts the brokerage without her own agent and wants to make an offer. Brandon's licensee, Tanya, is assigned to work with Carla. Tanya explains to Carla that she will help facilitate the transaction but will not advocate exclusively for Carla's interests. Which agency relationship is Tanya most likely establishing with Carla?
Correct Answer
D) Limited agency as a transaction broker
Under Utah Code Ann. § 61-2f and R162-2f, a transaction broker provides limited representation to one or both parties in a real estate transaction without acting as a fiduciary or exclusive advocate for either. Tanya's description — facilitating the transaction without advocating exclusively for Carla — aligns precisely with Utah's definition of limited agency or transaction brokerage. Written disclosure of this limited relationship is required.
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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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