Question

Which of the following situations would not require that a disclosed limited agency contract be signed?

Select one:
a. Two parties in a transaction are represented by a single broker
b. All of these require a disclosed limited agency agreement
c. Two parties in a transaction are represented by brokers who report to the same principal broker
d. Two parties in a transaction are represented by two brokers who report to different principal brokers who work for the same brokerage

Answer 1

A disclosed limited agency agreement is not required when two parties are represented by two brokers who report to different principal brokers, even if they are within the same brokerage.

Step-by-step explanation:

The situation that would not require a disclosed limited agency agreement being signed is when 'two parties in a transaction are represented by two brokers who report to different principal brokers who work for the same brokerage'. Disclosed limited agency agreements are typically required in situations where there is a potential for a conflict of interest. This might occur when a single broker represents both the buyer and seller, or when two brokers are working under the same principal broker. However, if two parties are represented by two different brokers who each report to different principal brokers within the same brokerage, the potential for conflict is less direct, and thus, this situation does not inherently require a limited agency agreement.