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Question:
Agent Andy is hired by Seller Sally to list her property for sale. Sally is under financial distress and is motivated to sell quickly. Later, Agent Andy enters under contract to help Buyer Bill purchase a suitable property. Agent Andy shows Sally’s property to Bill and lets Bill know Sally is desperate to sell and will accept a bid lower than the list price. Bill promptly decides to purchase the property. Since Bill purchased the property so quickly, Agent Andy didn’t have the opportunity to reveal to either party that he was acting in a dual agency capacity. Which of the following statements is least correct about this scenario?
A
Agent Andy can still timely disclose his dual agency status to both Seller Sally and Buyer Bill so long as he does so in writing within three business days of closing.
explanation
An agent who fails to promptly disclose their dual agency at the moment it arises is subject to the loss of their brokerage fee, liability for their principals’ money losses and disciplinary action by the Department of Real Estate (DRE).
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