Agency
In New Mexico, a qualifying broker who is also a salesperson's spouse enters into a transaction where the salesperson represents the buyer and the broker's interests are adverse. The broker must:
AParticipate as normal—family relationships do not create a conflict
BDisclose the family relationship and manage the conflict of interest appropriately✓ Correct
CRefuse to supervise the salesperson
DTerminate the salesperson's employment
Explanation
Family relationships between a qualifying broker and their associated salesperson create potential conflicts of interest in transactions. Full disclosure to all parties and careful management of the conflict is required.
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Key Terms to Know
Buyer's Agent
A 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.
AgencyA 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.
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