Washington broker Elena represents buyer couple Robert and Susan, who are married. Robert calls Elena privately and tells her he wants to make a low offer without Susan knowing the full details of his negotiating strategy. Elena knows that the property is community property and both spouses must sign the purchase agreement. Under Washington law, what is Elena's most appropriate course of action?
Correct Answer
D) Elena should advise Robert that both spouses are her clients and that she cannot keep material transaction information from Susan, then proceed with both parties' informed participation
Under RCW 18.86, Elena represents both Robert and Susan as clients. She owes both of them the duties of loyalty, disclosure, and reasonable care. Because Washington is a community property state, both spouses must sign deeds and agreements conveying or encumbering community property, making Susan a full party to the transaction. Elena cannot act on instructions from one client that would disadvantage or exclude the other client. The appropriate response is to counsel Robert about her obligations and ensure both clients are fully informed and participating.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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