Agency
Under Nevada law, what must a licensee do when representing a buyer in an in-house transaction (where the same brokerage also holds the listing)?
AAutomatically represent only the seller since the listing was obtained first
BDisclose the potential dual agency or designated agency situation in writing and obtain written consent from both parties before proceeding✓ Correct
CRefer the buyer to another brokerage to avoid any conflict
DContinue as the buyer's agent without any additional disclosure required
Explanation
In Nevada, when one brokerage represents both the buyer and seller in the same transaction (in-house or 'dual agency'), the broker must disclose this relationship in writing and obtain written informed consent from both parties. Nevada allows brokerages to use 'designated agency' — assigning different licensees within the brokerage to represent each party — which avoids full dual agency while keeping the transaction in-house.
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Key Terms to Know
Dual Agency
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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.
State-Specific Concepts
Disclosure Requirements
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