A West Virginia broker operates a small office and personally lists a home for the Pattersons. A buyer, unrepresented by any agent, contacts the broker directly and expresses interest in purchasing the Pattersons' property. The broker wants to assist the buyer in writing an offer while continuing to represent the Pattersons. The buyer has not yet signed any agreement. What is the MOST legally appropriate action the broker must take before proceeding?
Correct Answer
B) Obtain written informed consent from both the Pattersons and the buyer to create a disclosed dual agency relationship
Because the broker is a solo practitioner (small office with no other licensees to designate), designated agency is not possible. The only lawful path to representing both the buyer and the Pattersons in the same transaction is disclosed dual agency, which requires written informed consent from both parties before the dual agency begins. The broker must fully explain the limitations of dual agency — including that the broker cannot advocate exclusively for either party or share confidential negotiating information — and obtain written consent from both the Pattersons and the buyer before proceeding. This is a classic West Virginia trap: candidates may assume designated agency is always available, but it requires multiple licensees in the same firm.
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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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