Agent Rachel is a Utah licensee who has been working with buyer Kevin for several weeks. She has properly provided a written agency disclosure identifying her as Kevin's buyer's agent. Kevin's preferred neighborhood now includes a property listed by Rachel's own brokerage. If Rachel shows Kevin this in-house listing, which of the following best describes the additional agency disclosure obligation that arises?
Correct Answer
B) Rachel must provide a new written disclosure informing Kevin that a limited agency (dual agency) situation now exists, before showing the in-house listing
Under Utah Code Ann. § 61-2f-417 and R162-2f-401, when a licensee's brokerage represents both the buyer and the seller in the same transaction (limited agency or dual agency), an additional written disclosure is required — and it must be provided before the activity that creates the conflict, i.e., before showing the in-house listing. The initial buyer's agent disclosure does not cover the changed circumstances of limited agency. Utah requires informed written consent for limited agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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.
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