Agency
When a Maine broker learns that their salesperson has been secretly representing both buyer and seller without disclosure, the broker should:
AIgnore it if the transaction closed successfully
BInvestigate, report to the MREC if warranted, and take corrective action✓ Correct
COnly take action if a client complains
DSimply provide additional training to the salesperson
Explanation
A designated broker who learns of undisclosed dual agency must investigate the matter, take corrective action, and report to the MREC if the violation warrants reporting. Ignoring licensee violations creates liability for the broker.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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