Broker Lisa works at Mountain Peak Realty and has a listing agreement with seller David. Another broker at the same firm, Broker Kevin, represents buyer Sarah who wants to purchase David's property. The employing broker at Mountain Peak Realty designates Lisa to represent David and Kevin to represent Sarah. What type of agency relationship does this arrangement create?
Correct Answer
C) Designated agency, because the employing broker has assigned separate brokers to represent each party
Under Colorado's brokerage relationship statutes (C.R.S. § 12-10-401 et seq.), designated agency occurs when an employing broker designates one licensee within the firm to represent the seller and another licensee to represent the buyer in the same transaction. This allows each designated broker to act as a full advocate for their respective client while both work under the same employing broker.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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- → A Vermont licensee is asked about a designated agency firm appoints separate agents for buyer and seller. What is the best answer?
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