Agency
What is 'undisclosed dual agency' in Rhode Island and why is it problematic?
ADual agency that has been approved by both parties
BRepresenting both buyer and seller in the same transaction without their informed written consent; it is illegal and constitutes fraud✓ Correct
CA situation where a dual agent discloses their role
DRepresenting two buyers competing for the same property
Explanation
Undisclosed dual agency—representing both buyer and seller without disclosure and written consent—is illegal in Rhode Island, constitutes a breach of fiduciary duty, and can result in license revocation, civil liability, and potential criminal charges.
Related Rhode Island Agency Questions
- Which of the following is an example of a licensee breaching their fiduciary duty of 'obedience' in Rhode Island?
- Under Rhode Island law, a buyer's agent may accept compensation from the seller (or seller's broker) through the cooperative compensation structure. Is this a conflict of interest?
- A Rhode Island agent who represents neither the buyer nor the seller, but assists both parties with the transaction, is acting as a:
- A Rhode Island listing agent discovers a material defect in the seller's property. What is the agent's obligation?
- A listing agreement is a contract between:
- In Rhode Island, the agency disclosure form must be provided to a prospective buyer or seller:
- What is the significance of the Rhode Island 'Agency Relationship Disclosure' form?
- Fiduciary duties owed by a Rhode Island buyer's agent to their client include all of the following EXCEPT:
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