Agency
A Massachusetts real estate agent who is the listing agent for a property subsequently learns they are related to the buyer of that property must:
AImmediately terminate the listing
BDisclose the relationship to all parties as a potential conflict of interest✓ Correct
CContinue without disclosure since family transactions are exempt
DHave the buyer represented by a different brokerage only
Explanation
A personal relationship between a licensee and a party to the transaction is a material conflict of interest that must be disclosed to all parties. Massachusetts requires agents to disclose any personal or financial interest that could affect their professional judgment.
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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.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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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