MT361 Unit 2 Agency Relationship Brief Example

Reviewed by Chester Goodwin, MBA Foundations of Real Estate Practice Purdue University Global Free custom sample in 24 to 48h

This MT361 Unit 2 agency relationship brief answers an unrepresented buyer's open-house question, how low the sellers will go, before weighing any options, because the listing licensee's duty of confidentiality to the sellers is already in force. Written as a memo to a composite brokerage's managing broker, it sets out the facts, states the composite state's rules in a labeled box, then compares customer status, designated agency, dual agency and transaction brokerage against the six fiduciary duties. Gardiner and colleagues and Kadiyali, Prince and Simon supply evidence on dual agency, and Levitt and Syverson show that agents' interests can diverge from clients'. The written buyer agreement required before touring since August 17, 2024 gets its own section. Purdue Global MT 361 sets this brief in its BS in Business Administration course, and it recommends designated agency so each party keeps an advocate.

CourseMT361 Foundations of Real Estate Practice
UnitUnit 2
Paper typeAgency relationship brief
LengthAbout 930 words, 6 pages double-spaced
FormatAPA 7 student paper
SchoolPurdue University Global
ProgramBS in Business Administration
UpdatedOctober 2026

Free sample paper for MT361 Unit 2

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Who Owes Loyalty to Whom: An MT361 Unit 2 Agency Relationship Brief on a Buyer at the Open House

[Student Name]

Purdue University Global

MT361: Foundations of Real Estate Practice

Unit 2 Agency Relationship Brief

[Instructor Name]

[Date]

The brokerage, parties and the state of Calder are composite; the state rules box is illustrative and real states differ. The research cited is real.

What this part is doingAnswering the buyer's question before the options shows the brief knows which duty is already in force.
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Memo

To: Managing Broker, Larkspur Realty From: Listing licensee Re: Representation for an unrepresented buyer, Harlow listing

Facts

The Harlows signed an exclusive right-to-sell listing with me at Larkspur Realty for their 1962 brick ranch in Maple Ferry. On Sunday, a buyer who has no agent attended the open house, said she was a first-time buyer and asked, before leaving, how low the sellers would go. She also asked whether I could help her make an offer.

Rules Box: Calder, Composite

Agency law varies by state, so this analysis rests on the composite state of Calder as written for the course. Calder permits designated agency, in which a managing broker assigns different licensees in the same firm to each party. It permits dual agency only with the informed written consent of both parties. It also offers a transaction-broker status, in which a licensee assists both parties without representing either. Several real states prohibit dual agency, and others presume a nonagency relationship unless the parties agree otherwise, so the same facts could produce different answers elsewhere.

The Question in the Driveway

The answer to the buyer's first question does not depend on which option we choose next, because my duties to the Harlows already exist. As their agent, I owe them confidentiality, and their lowest acceptable price is exactly the kind of information that duty protects. I cannot reveal it, hint at it or let her infer it. I do owe the buyer honesty and fair dealing, and I must disclose known material defects in the property, but I owe her no loyalty. My reply was that I represent the sellers, that I cannot discuss their bottom line and that she is welcome to make any offer she chooses.

The moment a buyer asks how low the sellers will go is the moment representation stops being paperwork.

What this part is doingTreating the question as the point where duties become real shows the brief understands agency as practice, not forms.
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Four Paths and Six Duties

The six fiduciary duties of an agent are obedience, loyalty, disclosure, confidentiality, accounting and reasonable care. Each path for the buyer leaves her with a different set.

As a customer, she receives honesty and the disclosure of known material defects from me, but none of the six fiduciary duties. Loyalty, confidentiality and obedience run only to the sellers. She would negotiate without an advocate.

Under designated agency, a second Larkspur licensee would represent her with all six duties, while I continue to owe all six to the Harlows. The managing broker supervises both and must keep each side's confidential information apart.

Under dual agency, one licensee represents both parties. Full loyalty to either side is removed, since I could not push the sellers' price up for them while pushing it down for her. Confidentiality is limited to what each party asks to keep private. Obedience is limited to instructions that do not harm the other party. Accounting and reasonable care remain. Gardiner et al. (2007) found evidence that dual agency affected sale prices and time on market, which suggests that the conflict is not merely theoretical. Kadiyali et al. (2014) reached a more mixed conclusion, finding effects that depended on which side of the transaction a party was on, so the research does not settle the question, but neither does it show dual agency to be harmless.

As a transaction broker, a licensee would help both parties complete the paperwork and the deal while representing neither. She would receive honesty, accounting and reasonable care, but no advocacy.

Why Dual Agency Removes More Than It Seems

Dual agency is often described as a matter of consent forms, but its real cost is what it takes away. A buyer who consents to dual agency gives up an advocate in exchange for convenience. A first-time buyer may not understand what she has given up until the negotiation, when she asks for advice on her offer and the licensee cannot give it. Levitt and Syverson (2008) found that agents sold their own homes for more and after longer marketing than comparable client homes, evidence that an agent's interests and a client's do not always align; dual agency adds a second client whose interests run the other way.

The Agreement Before a Tour

Attending an open house requires no written agreement. Under the practice changes in effect since August 17, 2024, however, an MLS participant who begins touring homes with a buyer must first sign a written agreement with that buyer stating the compensation in specific terms. If the buyer chooses designated agency, the second licensee must have that agreement signed before showing her any other property.

Recommendation

I recommend designated agency, with a second Larkspur licensee assigned to the buyer and the managing broker supervising both sides. The buyer is inexperienced and has already asked for help making an offer, which tells us she wants an advocate. Dual agency would be more convenient for the firm but would leave her without one, and a transaction-broker arrangement would leave both parties without advocacy at the point they most need it. Designated agency is the only path that leaves each party with an advocate. If the buyer declines representation, she remains a customer, and I will put in writing that I represent only the sellers.

What this part is doingEnding with the fallback if the buyer declines shows the brief anticipated the choice it cannot make for her.
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References

Gardiner, J., Heisler, J., Kallberg, J. G., & Liu, C. H. (2007). The impact of dual agency. Journal of Real Estate Finance and Economics, 35(1), 39-55. https://doi.org/10.1007/s11146-007-9030-4

Kadiyali, V., Prince, J., & Simon, D. H. (2014). Is dual agency in real estate a cause for concern? Journal of Real Estate Finance and Economics, 48(1), 164-195. https://doi.org/10.1007/s11146-012-9385-9

Levitt, S. D., & Syverson, C. (2008). Market distortions when agents are better informed: The value of information in real estate transactions. Review of Economics and Statistics, 90(4), 599-611. https://doi.org/10.1162/rest.90.4.599

What the MT361 Unit 2 assignment asks for

Unit 2 asks students to analyze an agency question that arises during a transaction and recommend how the brokerage should handle it. The brief should state the facts, the governing rules and the options, then reach a recommendation. Because agency law varies by state, instructors expect students to name the state whose rules they apply or to label a composite state clearly. Each option should be compared by the fiduciary duties it carries, usually obedience, loyalty, disclosure, confidentiality, accounting and reasonable care. Students should explain what a licensee may and may not tell an unrepresented party. The 2024 written buyer agreement requirement belongs in the analysis where touring is involved. Memo format is common.

How this MT361 Unit 2 example is built

The facts section describes the listing, the open house and the buyer's two questions. A rules box sets out what the composite state permits and warns that real states differ. The brief then answers the buyer's first question directly, under a highlighted line about the moment representation becomes real. Four paths follow, each with the duties it keeps and removes. Dual agency gets a separate section on what it takes away, citing research on its effects and on agents' interests. The written agreement required before touring is explained, along with the step the second licensee must take before showing the buyer any other house. The recommendation chooses designated agency and states what happens if the buyer declines representation.

Reading the MT361 Unit 2 grading rubric

Agency briefs are commonly graded on accurate statement of duties, correct application of the governing rules, clear comparison of options and a reasoned recommendation. Answering the immediate question before discussing options shows the student understands that duties already exist. Rubrics reward naming which duties each option keeps or removes rather than describing options vaguely. Labeling state rules as state-specific shows legal awareness. Using research on dual agency adds depth, especially where studies disagree and the brief says so. The 2024 agreement requirement should be stated accurately, with its trigger. A recommendation that weighs the buyer's inexperience against the firm's convenience shows judgment. A memo a managing broker can act on in one reading, with APA 7 citations, earns the remaining marks.

Common MT361 Unit 2 mistakes, and how to avoid them

These briefs often describe the four relationships in general and never answer what the licensee should say in the driveway. Another pattern treats dual agency as a paperwork question, missing that it removes full loyalty from both sides. Students sometimes apply one state's rules as if they were national law. The 2024 agreement requirement is often misstated as applying to open houses. Recommendations tend to favor whatever is easiest for the brokerage. Before drafting, write the buyer's exact question at the top of the page and answer it in two sentences using only the duties already owed. If those sentences are clear, the rest of the brief has its anchor.

Get an MT361 Unit 2 example written to your instructions

Who does your Unit 2 scenario put in the room, and which jurisdiction governs it, if any? Pass along the fact pattern, the prompt and the rubric. The free first custom brief comes back within 24-48h, the relationship named before any advice, each duty mapped to each option, and state-specific rules clearly bracketed. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.

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MT361 Unit 2 questions, answered

What does OLD CAR stand for?

It is a common memory aid for the fiduciary duties an agent owes a client: obedience, loyalty, disclosure, confidentiality, accounting and reasonable care. Some states define these duties by statute and modify them, especially for dual or designated agency. Use the aid for structure, but cite your state's statute or your course text for the duties that actually apply.

Is dual agency legal everywhere?

No. Several states prohibit it outright, others permit it only with informed written consent from both parties, and some replace it with transaction brokerage or designated agency. Because the answer changes the analysis completely, name the governing rules in the first paragraph. If the prompt names no state, a labeled composite rule set is a reasonable approach.

What can a listing agent tell an unrepresented buyer?

Facts about the property, including known material defects, and honest answers about the process. What the agent cannot share is confidential information from the sellers, such as their lowest acceptable price or their reasons for selling, unless authorized. Most briefs are graded partly on whether the licensee stays inside that line while still treating the buyer fairly.

Where can I find a free MT361 Unit 2 sample paper?

The complete MT361 Unit 2 agency relationship brief is on this page, answering an unrepresented buyer's question about the sellers' lowest price.

Why does the MT361 Unit 2 sample recommend designated agency over dual agency?

Designated agency gives the buyer her own advocate in the same firm, while dual agency would remove full loyalty from both the buyer and the sellers.