A licensee has a buyer's representation agreement and a listing with a seller. How is the agent operating?

Prepare for the Champions Law of Agency Test. Use flashcards and multiple choice questions with hints and explanations to boost readiness. Get exam-ready!

In the scenario described, the agent is operating as a non-appointed associate in an intermediary relationship. This situation occurs when the licensee represents both a buyer and a seller in the same transaction. In such cases, the law often designates the agent as an intermediary, where they facilitate communication and negotiations between the parties while maintaining a level of neutrality.

Being a non-appointed associate means that the agent cannot take sides or advocate for either party's best interest beyond the basic obligations they owe to both, which is to act fairly and honestly. This role ensures that the agent is balancing the duties owed to each client without favoring one over the other, creating a fair environment for both the buyer and the seller. The intermediary relationship is structured to help manage potential conflicts of interest effectively while still allowing the agent to assist both clients in the transaction.

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