In a situation where an agent from ABC Realty has a listing sold by a buyer's agent also from ABC Realty, what is the broker most likely to do?

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

When an agent from ABC Realty lists a property and a buyer's agent from the same firm successfully sells it, the broker is most likely to appoint both associates to represent their respective parties under intermediary rules. This approach allows the brokerage to facilitate the transaction while ensuring that both the seller and the buyer receive fair representation.

In states that allow intermediary practice, this method balances the interests of both the seller and the buyer by providing a structured way to manage dual agency. The broker acts as an intermediary, which requires that both agents comply with specific legal obligations to maintain the confidentiality and fair treatment of both parties throughout the negotiation and transaction process. This is pivotal in preventing conflicts of interest and ensuring a smooth transaction.

Choosing to appoint both agents under intermediary rules is effective in situations like this, as it maximizes the utilization of the firm’s resources while adhering to legal requirements concerning representation.

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