Broker Janet's firm has a listing agreement with seller Paul for his Little Rock home. Buyer Carol is also working with Janet's firm through a separate buyer representation agreement. Janet assigns agent Mike to represent Paul and agent Lisa to represent Carol in the same transaction. Under Arkansas agency law, this arrangement is best described as:
Correct Answer
B) Designated agency
Under Arkansas agency law, designated agency occurs when a broker designates specific affiliated licensees to represent the buyer and the seller separately within the same brokerage on the same transaction. Here, Janet (the designated broker) has assigned Mike to represent seller Paul and Lisa to represent buyer Carol, which is the textbook definition of designated agency in Arkansas.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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