Broker Linda represents buyer Tom as a client in Washington. Tom asks Linda to prepare an offer for a property listed at $395,000. Tom's offer is $370,000. The listing broker is from the same real estate firm as Linda. Under RCW 18.86, what type of agency relationship exists, and what must Linda do before proceeding?
Correct Answer
D) Dual agency exists; Linda must obtain written consent from both Tom and the seller before proceeding
Under RCW 18.86.060, when a broker or brokers from the same firm represent both the buyer and the seller in the same transaction, a dual agency relationship arises. In Washington, dual agency is permitted only with the written consent of both the buyer-client and the seller-client. Linda must obtain this written consent from both Tom and the seller before proceeding with the transaction. Without written consent, acting as a dual agent violates Washington's statutory agency law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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