[telebone_man]

For what it's worth, the agreement (or lack of) is between the company and the recruiter. It's none of your business! If asked about it by either party, I would refer them to the other party and simply state you have no authority on the matter.

The employer is the recruiter's client, not yours. You don't work for the recruiter. You are the asset in this equation.

Personally, I would take the job and let things play out between the recruiter and employer. You said yourself you're struggling to find work. Damned if you do, damned if you don't.

Is it legal? You are acting legally. It's none of your business if the employer is or isn't. Is it moral? Nothing you are doing is immoral. You have fulfilled your obligation by only allowing the recruiter to represent you for the role. It is a disappointing situation. Not immoral!