In Arkansas, designated broker Ellen operates a brokerage where agent Sam represents seller Diane and agent Wendy represents buyer Tom in the same transaction. Both Diane and Tom have signed designated agency disclosure forms. During the transaction, Ellen reviews all documents and communicates with both Sam and Wendy. Under Arkansas agency law, which of the following best describes Ellen's role in this transaction?
Correct Answer
D) Ellen acts as a neutral supervisory broker overseeing designated agents on both sides
Under Arkansas designated agency rules, when a designated broker assigns separate agents to represent the buyer and seller within the same brokerage, the designated broker typically serves in a supervisory role overseeing both designated agents. Ellen's supervisory involvement does not automatically make her a dual agent; rather, she manages the brokerage's compliance and oversight obligations while the designated agents handle their respective clients' representation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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.
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