A West Virginia buyer contacts a listing agent to view a property. The listing agent explains that she represents the seller and cannot represent the buyer, but she can assist both parties in completing the transaction without representing either side. The buyer agrees in writing. What type of agency relationship has been established with the buyer?
Correct Answer
D) Transaction brokerage
Transaction brokerage (also referred to as non-agency or facilitation) occurs when a licensee assists both the buyer and seller in a transaction without representing either party as a client. In West Virginia, this arrangement must be disclosed and agreed to in writing. The licensee owes honesty and fairness to both parties but does not owe fiduciary duties to either. This is the correct characterization of the relationship described.
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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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