Broker Chen at Wisconsin Realty represents seller Paula on a listing. Buyer Greg, who is unrepresented, contacts Broker Chen directly and expresses interest in Paula's property. Broker Chen provides Greg with information about the property and assists him in drafting an offer. Under Wisconsin law, what is Broker Chen's agency relationship with Greg?
Correct Answer
C) Broker Chen is a customer service provider to Greg, not Greg's agent, unless a separate agreement is made
Under Wisconsin Administrative Code REEB 24 and Wisconsin Statutes Chapter 452, a broker who represents a seller owes fiduciary duties to the seller. An unrepresented buyer who interacts with the listing broker is treated as a 'customer,' not a client. The broker may provide ministerial acts and factual information to the customer without creating an agency relationship, unless a separate buyer agency agreement is executed. Broker Chen remains Paula's agent and Greg is a customer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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.
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