Discuss Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam Topic 8 Question 7

In a jurisdiction where the common law of agency applies, a broker has listed a home and then presented to the seller an offer from another client of the broker. The offer has been accepted. The broker has what type of agency relationship with the parties?

Aseller agency, no agency relationship with buyer

Bno agency relationship; in this situation the broker becomes a facilitator only

Cseller agency, buyer sub-agency

Ddual agency

Suggested Answer: D

Comprehensive and Detailed Explanation (150--250 words):

Under the common law of agency, an agent owes fiduciary duties to the party they represent. If a broker represents a seller under a listing agreement but also brings a buyer who is their client, the broker now represents both parties in the same transaction. This creates a dual agency relationship.

Dual agency is lawful in Massachusetts only if there is full disclosure and written informed consent from both parties. Without disclosure, it would be an undisclosed dual agency, which is illegal.

A: Incorrect --- the broker does represent the buyer.

B: Facilitation is a non-agency relationship, but that's not the case here.

C: Buyer is not a sub-agent of the seller; they are a client.

Correct answer: D: dual agency.

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31 comments · newest first

Ria 6 months ago

Could be a facilitator role, but I see the dual agency argument too.

Lawana 6 months ago

I lean towards dual agency. It makes sense in this scenario.

Lynette 6 months ago

But the broker has to facilitate the buyer too, right?

Aileen 6 months ago

I disagree. It's seller agency, no agency with the buyer.

Anglea 6 months ago

I’m surprised this is allowed in some places!

Fannie 7 months ago

Pretty sure it's C, seller agency and buyer sub-agency.

Rolf 7 months ago

Wait, how can the broker represent both without a conflict?

Asuncion 7 months ago

I'm going with D. Dual agency. The broker is caught in the middle here, representing both sides.

Glory 8 months ago

Dual agency? More like "duel agency" am I right? *wink wink*

Garry 8 months ago

D. Dual agency. The broker is acting on behalf of both the seller and the buyer.

Malissa 8 months ago

B. No agency relationship; the broker is just a facilitator in this case.

Arthur 8 months ago

C. Seller agency, buyer sub-agency. The broker is representing both the seller and the buyer, even if indirectly.

Carin 8 months ago

I think the answer is D. Dual agency makes the most sense here.

Caprice 8 months ago

I’m leaning towards A, seller agency, but I’m confused about whether the broker has any obligations to the buyer in this scenario.

Alyce 9 months ago

I feel like this is similar to a practice question we did on agency relationships, but I can't recall if it was specifically about sub-agency.

Valentin 9 months ago

I think the answer might be D, dual agency, because the broker is involved with both the seller and the buyer.

Keneth 9 months ago

I remember studying that in dual agency, the broker represents both parties, but I'm not sure if that's the case here.

Sharita 9 months ago

I think the key here is that the broker presented an offer from another client. That suggests they have some kind of agency relationship with the buyer, even if it's not a full representation. I'm going to go with option C.

Jacquline 9 months ago

Hmm, I'm not sure about this one. I know dual agency is when the broker represents both the seller and the buyer, but I'm not sure if that applies here. I'll have to re-read the question carefully.

Yaeko 9 months ago

Okay, let me think this through. The broker listed the home for the seller, so they have a seller agency relationship. But then they presented an offer from another client, so they might have a sub-agency relationship with the buyer as well. I'm leaning towards option C.

Zona 10 months ago

I think it's dual agency. The broker represents both parties.

Emile 10 months ago

I thought it was just seller agency, but dual agency makes sense.

Katie 10 months ago

It's definitely dual agency since the broker represents both parties.

Anglea 10 months ago

Not necessarily. If the seller is the main client, it's seller agency.

Nieves 11 months ago

I'm a bit confused on this one. Is the broker representing both the seller and the buyer, or is the broker just acting as a facilitator with no agency relationship?

Fatima 11 months ago

I think this is a dual agency situation, where the broker has an agency relationship with both the seller and the buyer.

Shawna 5 months ago

↳ replying to Fatima

It can be tricky, but it's legal in some places.

Yaeko 5 months ago

↳ replying to Fatima

But isn't that a conflict of interest?

Frank 5 months ago

↳ replying to Fatima

Definitely! The broker represents both parties.

Brittani 6 months ago

↳ replying to Fatima

I agree, it sounds like dual agency to me.

Sina 10 months ago

↳ replying to Fatima

As long as both parties are informed, it should be fine.

Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam - Topic 8 Question 7 Discussion