Answer
Broker has a problem. Broker is, in fact, a dual agent because broker has a written and signed agency agreement with both buyer and seller. However, buyer never consented to broker serving as a limited dual agent which means that broker was prohibited from doing so. When buyer wanted to purchase broker's listing, broker should have immediately referred either buyer or seller to another broker and proceeded to represent only one of the parties. In the alternative, broker could have requested buyer to consent to broker serving as a limited dual agent. However, what broker had no authority to do is exactly what broker did. Broker had no authority from buyer to serve as a limited dual agent but broker was, nevertheless, a limited dual agent in this transaction. If a dispute erupts regarding broker's representation, broker and DB may want to consult legal counsel. If the transaction closes without controversy, DB should use this scenario as a teachable moment.
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