Agency

A North Dakota licensee shows a buyer a home listed with their own brokerage. If not properly managed, this situation could create:

AA designated agency arrangement automatically
BAn undisclosed dual agency if the buyer's relationship is not clearly established✓ Correct
CA subagency relationship with the seller
DA transaction brokerage arrangement by law

Explanation

When a buyer is shown a listing within the same brokerage and agency relationships are not properly established and disclosed, an undisclosed dual agency may arise, violating fiduciary duties and North Dakota agency disclosure requirements.

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