Which of the following best describes how Utah law handles the concept of 'transaction brokerage,' where a licensee assists parties without owing fiduciary duties to either?
Correct Answer
B) Utah does not recognize transaction brokerage; licensees must act as an agent — either as a seller's agent, buyer's agent, or limited agent — and owe defined statutory duties in each role
Utah does not recognize transaction brokerage as a no-fiduciary-duty relationship. Under Utah Code §61-2f, licensees must operate as one of three agency types: seller's agent, buyer's agent, or limited agent (representing both parties in the same transaction with written consent). Even a limited agent owes each party defined statutory duties — though those duties are reduced compared to those owed by an exclusive agent — meaning there is no Utah agency category that eliminates all duties to the parties being served.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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.
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