Broker-associate Kim works at a Bentonville brokerage under designated broker Frank. Kim's client, buyer Nathan, wants to purchase a home listed by Kim's own brokerage. Frank decides to personally represent the seller while Kim continues to represent Nathan. Under Arkansas agency law, this arrangement is best classified as:
Correct Answer
B) Designated agency, with Frank and Kim serving as designated agents for their respective clients
This is a designated agency arrangement. The brokerage (Frank's firm) represents both the buyer (through Kim) and the seller (through Frank as the designated broker). Arkansas law permits designated agency when the broker designates specific affiliated licensees to represent each party separately. Frank representing the seller and Kim representing Nathan as buyer, within the same brokerage, is the textbook application of designated agency — provided both parties receive proper disclosure and consent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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