Maine Real Estate License Practice Exam

Which of the following is an example of a real estate agency relationship?

1. Disclosed dual agency

2. Exclusive open listing

3. Flat-fee sales

4. Independent contractor agreements

The correct answer is: Disclosed dual agency

The concept of a real estate agency relationship revolves around the fiduciary duties and obligations that exist between a real estate agent and their client. Disclosed dual agency is a clear example of such a relationship because it involves the agent representing both the buyer and the seller in a transaction, making it essential for the agent to disclose this dual representation to all parties involved. In a disclosed dual agency scenario, the brokerage must inform both clients of their role and obtain their consent, as the agent is tasked with balancing the interests of both parties. This unique arrangement requires careful navigation to ensure that the agent is compliant with ethical standards and legal obligations, highlighting the complexity and responsibilities embedded within the agency relationship. Other options, like exclusive open listings or flat-fee sales, do not pertain to agency relationships in the same way. Exclusive listings indicate a seller's willingness to work with one agent while retaining the right to sell independently, which doesn't create a traditional agency relationship. Flat-fee sales usually refer to a pricing structure for real estate services rather than a change in the type of agency relationship. Independent contractor agreements are contractual arrangements between agents and their brokerages, focusing on the nature of their working relationship rather than the fiduciary responsibilities tied to agency roles in real estate transactions.