Same Firm, Both Sides
Priya works for a firm that holds an exclusive right-to-sell listing on a condominium at 45 Harbor View. Priya also has a signed buyer agency agreement with the Nguyens, who now want to buy that condominium. Priya's managing broker says, "Just handle both sides; we do it all the time." The sellers told Priya in confidence that they must relocate in 60 days and would accept $20,000 below list. The Nguyens ask Priya, "Do you think the sellers will take less?" and "What's their bottom line?" Priya has not yet delivered any agency disclosure form to either party.
1. What agency relationship would arise if Priya proceeds, and what written disclosures and consents does New Hampshire law require?
Read the worked answer
Because the same firm would represent the sellers on the listing and the buyers under the buyer agency agreement, the firm would be a dual agent. New Hampshire requires agency disclosure to both parties and informed written consent to dual agency before the firm acts for both sides. Priya should deliver the agency disclosure form, explain the limits of dual agency, and obtain signed consent from the sellers and the Nguyens. The managing broker's "we do it all the time" comment is not a substitute for written consent. Without both consents, the firm cannot act as a dual agent.
2. How should Priya answer the buyers' questions about the sellers' bottom line?
Read the worked answer
Priya cannot disclose the sellers' confidential motivation or bottom-line price to the buyers. In dual agency, the firm owes duties to both sides, but it may not use one party's confidences against the other. Priya should say she cannot share the sellers' private instructions, then provide market data, comparable sales, and guidance so the buyers can decide their own offer. She should not hint at "$20,000 below list." If she cannot serve both sides within those limits, the firm should reconsider the dual agency.
3. If either party refuses to consent to dual agency, what are the firm's options?
Read the worked answer
The firm cannot proceed as a dual agent without both consents. It may withdraw from the buyer side and let the Nguyens be represented by another firm or proceed as customers or facilitators with proper written disclosure; withdraw from the listing side if the seller agrees to release the firm and the buyer side continues; or refer one side to another brokerage. The firm must not continue representing both while one party has refused consent. The managing broker should document the decision and the disclosures.