Question 45

An agent working for a seller may NOT work with the buyer as a transaction broker in the purchase of the seller's property.

An agent representing a seller is typically bound by fiduciary duties to exclusively advocate for the seller's interests and cannot act as a transaction broker for the buyer in the sale of that property.

A) The buyer as a transaction broker in the purchase of the seller's property

This option is correct because an agent working for a seller cannot simultaneously represent the buyer in a transaction broker capacity when selling the seller’s property. This creates a conflict of interest, as the agent's primary responsibility is to the seller.

B) The buyer as an agent in purchasing another property

This option is incorrect because an agent representing a seller can work with a buyer as an agent for a different property. There is no inherent conflict of interest as long as the agent's duties to the seller are maintained in the original transaction.

C) Other sellers as an agent in selling another property

This option is also incorrect. An agent for a seller can represent other sellers in different transactions, as these situations do not interfere with the agent's obligation to the initial seller.

D) The buyer as a customer in the purchase of the seller's property

This option is incorrect as well. An agent can work with the buyer as a customer, meaning they can provide information and facilitate communication without the same fiduciary duties owed to a client. This does not create a conflict of interest as the agent remains loyal to the seller.

Conclusion

The correct answer is A because it highlights a fundamental principle in real estate agency regarding the conflict of interest when representing both buyer and seller in the same transaction. Options B, C, and D do not violate the agent’s responsibilities, as they pertain to different scenarios that do not jeopardize the agent's loyalty to the seller.