Under Colorado's brokerage relationship framework, which of the following statements accurately distinguishes designated agency from dual agency?
Correct Answer
B) In designated agency, separate broker associates within the same firm each represent one party; in dual agency, one broker represents both parties
Under Colorado law (C.R.S. § 12-10-401 et seq.), designated agency occurs when an employing broker assigns different broker associates within the same firm to represent the buyer and seller separately, with each owing full fiduciary duties to their respective client. Dual agency, by contrast, occurs when a single broker represents both parties simultaneously, creating an inherent conflict that requires written informed consent from both parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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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?
- → In Vermont, a licensee has substantial contact with an unrepresented person before a showing. Which statement is correct?
- → In Vermont, a firm has not elected designated agency. Which statement is correct?
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- → A Vermont licensee is asked about a licensee has substantial contact with an unrepresented person before a showing. What is the best answer?
- → In Vermont, a seller receives another offer before closing. Which statement is correct?
- → In Vermont, a designated agency firm appoints or changes a designated agent. Which statement is correct?
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