Designated Broker Chen runs a small brokerage in Seattle. Broker Amy in Chen's firm represents the seller of a Capitol Hill condo, while Broker James, also in Chen's firm, represents the buyer interested in the same condo. Under RCW 18.86, what type of agency situation exists, and what is required?
Correct Answer
B) A dual agency situation requiring written consent from both the seller and the buyer
Under RCW 18.86.060, when two brokers within the same firm represent opposite sides of a transaction, the brokerage is considered a dual agent. Washington law requires written consent from both the seller and the buyer before proceeding with a dual agency arrangement. Both parties must be informed that the firm represents both sides, and the brokers' duties are modified accordingly.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
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