Broker Tom has been working with buyer clients, the Nguyens, under a signed buyer agency agreement. The Nguyens make an offer on a property listed by Tom's firm. Tom's employing broker decides to convert the transaction to designated agency, assigning Tom to continue representing the Nguyens and assigning another broker associate, Sandra, to represent the seller. Which statement best describes the legal effect of this arrangement for the Nguyens?
Correct Answer
B) Tom continues to owe the Nguyens full fiduciary duties as their designated agent
In a designated agency arrangement under Colorado law (C.R.S. § 12-10-401 et seq.), each designated broker associate continues to owe full fiduciary duties to their respective client. Tom, as the Nguyens' designated agent, continues to represent them with loyalty, confidentiality, disclosure, obedience, and reasonable care — the same duties he owed under the original buyer agency agreement. Designated agency is designed precisely to preserve these protections in in-house transactions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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