Question

Tim is a real estate salesperson who's broker is serving as an intermediary in a transaction. Tim was assigned by his broker to represent the seller in the transaction, while another licensee in the office represented the buyer. Tim is allowed to give advice to which of the following parties...?

AThe seller only
BThe buyer
CBoth the seller and buyer
DTim is never allowed to give advice if his broker is serving as an intermediary

Answer 1

Tim, as a real estate salesperson assigned to represent the seller, is only allowed to give advice to the seller and not the buyer. This is to maintain clear agency relationships and prevent conflicts of interest in the transaction where his broker is serving as an intermediary.

Step-by-step explanation:

In a real estate transaction where the broker is serving as an intermediary, and Tim has been assigned to represent the seller, Tim is allowed to give advice to the seller only. As Tim's fiduciary responsibility is towards the seller, he cannot provide advice to the buyer, who is represented by another licensee in the same office. This limitation is imposed to maintain clear lines of agency and prevent conflicts of interest. If Tim's broker is serving as an intermediary, it means that the broker is facilitating the transaction without providing representation to either the buyer or seller, however, the salespersons under the broker may still be assigned to represent individual parties in the transaction.