Summit Peak Realty has a listing for a mountain property near Breckenridge. A buyer who is also a client of Summit Peak Realty makes an offer on that property. The employing broker at Summit Peak designates Broker Alicia to represent the seller and Broker Derek to represent the buyer. Both Alicia and Derek are broker associates at Summit Peak. Which Colorado brokerage relationship structure does this arrangement describe?
Correct Answer
C) Designated agency, because separate broker associates are assigned to represent each party
Designated agency is the arrangement in which an employing broker assigns different broker associates within the same firm to represent the buyer and seller separately. Even though both Alicia and Derek work for Summit Peak Realty, each is designated to represent one party exclusively, preserving individual fiduciary duties. This is expressly recognized under Colorado's brokerage relationship framework (C.R.S. § 12-10-401 et seq.) and is a key distinction from dual agency.
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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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