Broker Patel lists a home for seller Okonkwo in Olympia. Patel's colleague at the same firm, Broker Davis, is working with buyer Chen. Neither Patel nor Davis has discussed the situation with the parties. Chen wants to make an offer on Okonkwo's property. Under RCW 18.86, what agency situation exists and what must occur before proceeding?
Correct Answer
D) A dual agency situation exists within the firm; written consent from both Okonkwo and Chen is required before proceeding.
Under RCW 18.86.060, when a licensee within a firm represents the seller and another licensee within the same firm represents the buyer for the same property, a dual agency situation arises for the firm (in-house dual agency). Washington law requires written consent from both the seller and the buyer before the firm can proceed as a dual agent. The designated broker of the firm is typically the dual agent, and both parties must acknowledge and consent to the modified duties that apply in dual agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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.
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