New York Real Estate Salesperson ExaminationNew York State Specific Laws and RegulationsMedium
A New York real estate salesperson is representing a seller. During a showing, a prospective buyer, who is not represented by an agent, asks the salesperson about the best way to make a competitive offer. The salesperson advises the buyer on offer strategies and market comparables. What agency relationship has been created or implied by the salesperson's actions?
- ABuyer's Agent
- BSeller's Agent
- CUndisclosed Agency
- DDual Agent
Show answer & explanationAnswer & explanation
Correct answer: A. Buyer's Agent
By providing advice on offer strategies and market comparables to an unrepresented buyer, the salesperson has implicitly acted as a buyer's agent, creating an undisclosed agency relationship with the buyer, which is a violation if not properly disclosed and consented to.
Why the other options are wrong
- B. The salesperson is primarily the seller's agent but has gone beyond the scope of that role.
- C. While the salesperson intended to represent the seller, their actions toward the buyer created an undisclosed buyer's agency, a form of undisclosed agency.
- D. Dual agency requires specific written consent from both parties, which was not obtained here.
Implied Agency
An agency relationship that arises from the actions, conduct, or words of the parties, rather than from a formal written agreement, often leading to undisclosed agency issues.
- Can be created unintentionally by a licensee's actions.
- Licensees must be careful not to give advice to unrepresented parties.
- Carries the same legal obligations as express agency.
Memory trick: Words and deeds can bind, even if papers you don't find.