Agency
In New Mexico, when may a seller's agent also receive compensation from the buyer?
ANever — it is always prohibited
BOnly with the informed written consent of both the buyer and seller, disclosing the dual compensation arrangement✓ Correct
CAs long as the buyer agrees verbally
DAs long as the total compensation does not exceed 6%
Explanation
An agent receiving compensation from both buyer and seller must obtain the informed written consent of both parties. Without disclosure and consent, dual compensation creates a prohibited conflict of interest under NMREC rules.
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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.
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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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