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Wisconsin licensee Rachel has been working with buyer client James under a signed buyer agency agreement. James decides to make an offer on a property listed by Rachel's own brokerage firm. Rachel's broker informs James that the firm will now be in a multiple representation relationship. Under Wisconsin law, what must occur before the broker can proceed with multiple representation?

Correct Answer

B) The broker must obtain James's written consent to the multiple representation relationship

Under Wisconsin Administrative Code REEB 24, a broker may not engage in multiple representation without obtaining the written informed consent of all parties involved. Before the broker can represent both James (the buyer) and the seller in the same transaction, James must provide written consent acknowledging and agreeing to the multiple representation arrangement. This is a mandatory requirement, not optional.

Answer Options
A
The broker must terminate the buyer agency agreement with James before proceeding
B
The broker must obtain James's written consent to the multiple representation relationship
C
The broker must assign a new salesperson to James automatically, without requiring consent
D
The broker must disclose the situation verbally to both parties and proceed if neither objects

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Related Topics & Key Terms

Key Terms:

multiple_representationwritten_consentREEB_24buyer_agency

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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