Maine Real Estate License Practice Exam

In a scenario where appointed agency is practiced, what is true about agents representing the seller and buyer?

1. Both agents must disclose dual agency

2. Only the seller's agent must disclose dual agency

3. The buyer's agent must act as a subagent

4. Neither agent is in disclosed dual agency

The correct answer is: Neither agent is in disclosed dual agency

In a scenario where appointed agency is practiced, the concept of disclosed dual agency does not apply. Appointed agency allows for an individual agent within a brokerage to represent the interests of either the seller or the buyer, while the brokerage itself represents both parties. This arrangement means that each agent operates independently, focusing solely on the fiduciary duties to their respective clients without crossing over into dual agency, which would require formal disclosure. When a brokerage facilitates an appointed agency, each agent retains the specific allegiance to their client (the seller or the buyer), implying that neither is in a position of dual agency where they must represent both sides simultaneously. This separation allows for less potential conflict and preserves each party’s interests. Hence, stating that neither agent is in disclosed dual agency correctly reflects that they are not required to disclose dual agency scenarios, as they aren’t functioning under that structure within an appointed agency framework. This understanding clarifies why the situation does not involve dual agency disclosures, in contrast to situations where a single agent attempts to represent both buyer and seller, which necessitates disclosures and careful navigation of potential conflicts of interest.