New York Real Estate Salesperson ExaminationLaws of AgencyEasy
A real estate broker agrees to represent both the buyer and the seller in the same transaction with the written consent of both parties. What type of agency relationship has been created?
- ABuyer Agency
- BDual Agency
- CDesignated Agency
- DSub-agency
Show answer & explanationAnswer & explanation
Correct answer: B. Dual Agency
Dual agency occurs when one real estate broker or brokerage represents both the buyer and the seller in the same transaction. This is permissible in New York, but only with the informed written consent of both parties.
Why the other options are wrong
- A. Buyer agency is when the broker represents only the buyer.
- C. Designated agency is a form of dual agency where the broker designates different agents within the same firm to represent each party.
- D. Sub-agency is when an agent works for another agent, usually the seller's agent, to find a buyer.
Dual Agency
A situation in which a real estate broker or salesperson represents both the buyer and the seller in the same transaction.
- Requires informed written consent from both parties.
- Limits the fiduciary duties of loyalty and full disclosure.
- Can be direct or designated (in-house).
Memory trick: SINGLE, DUAL, DESIGNATED, SUB.