undisclosed agency

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undisclosed agency

The failure of an agent to disclose that he or she is working for another, called the principal. Most states require real estate agency disclosure before a person reveals any confidential information.

Example: Ralph asks his next-door neighbor, real estate agent Beronda, to help him find a house. Beronda agrees, but she must disclose to Ralph that she will work as a subagent for the sellers (the typical situation) and will not be Ralph's agent. She will owe Ralph only the duty of honesty and no other duties.

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