What is required of an agent if they encounter an unrepresented buyer?

When an agent encounters an unrepresented buyer, they are required to fully disclose their role and obligations. This is essential because the agent has a fiduciary duty to their client and must ensure that the unrepresented buyer understands the nature of their relationship with the agent. This disclosure will typically involve explaining that the agent is representing the seller, outlining the agent's responsibilities, and clarifying that the buyer does not have a representative looking out for their interests.

This requirement is rooted in ethical practices and legal standards. By being transparent, the agent helps to maintain trust in the transaction and ensures that all parties are aware of the dynamics at play. Proper disclosure also protects the agent from liability issues that might arise if the buyer feels misled or uninformed about the agent's role.

Other options are less appropriate because they do not uphold the standards of professionalism and responsibility expected in the real estate industry. For instance, proceeding without any documentation neglects the need for clear communication about the agent's obligations. Likewise, not interacting with the buyer would go against the fundamental role of an agent to facilitate transactions. Operating only under dual agency would limit the agent's options and does not reflect the necessity of transparency in dealings with an unrepresented buyer.