Marcus is a licensed broker in West Virginia who has been working with both the Hendersons (sellers) and the Garcias (buyers) throughout a transaction involving the same property. Both the Hendersons and the Garcias have signed a written consent form acknowledging and agreeing to this arrangement. Which agency relationship does this describe, and what is the primary limitation it places on Marcus?
Correct Answer
B) Disclosed dual agency; Marcus cannot provide undivided loyalty or confidential negotiating information to either party
This scenario describes disclosed dual agency, which is permitted in West Virginia when both the buyer and seller provide written informed consent. The primary limitation of dual agency is that the licensee cannot provide undivided loyalty to either party and must not disclose one party's confidential negotiating information (such as the highest price a buyer will pay or the lowest price a seller will accept) to the other party. Marcus must remain neutral and facilitate the transaction without advocating exclusively for either side.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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