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AgencyDisclosure_requirementsHARD

Connecticut salesperson Brenda works for Coastal Realty and has been designated by her broker as the designated buyer's agent for client Michael. Her colleague at the same brokerage, salesperson Eric, has been designated as the seller's agent for the same transaction. Both Brenda and Eric operate under the same supervising broker. Under Connecticut law, which statement most accurately describes the agency disclosure obligations in this designated agency arrangement?

Correct Answer

B) Brenda must disclose to Michael that she is his designated buyer's agent, and Eric must disclose to the seller that he is the designated seller's agent, with the brokerage's role as a limited dual agent also disclosed in writing

Connecticut recognizes designated agency, where a broker designates individual licensees to represent each party in a transaction, while the broker itself may operate as a limited dual agent. Under Connecticut agency law and CGS § 20-325c, proper disclosure requires that each designated agent disclose their specific role to their respective client in writing, and the brokerage's limited dual agency status must also be disclosed and consented to in writing. This arrangement allows each client to receive advocacy from their designated agent while acknowledging the brokerage's overarching dual position.

Answer Options
A
The brokerage must disclose dual agency to both parties because all agents at the same firm represent the same principal
B
Brenda must disclose to Michael that she is his designated buyer's agent, and Eric must disclose to the seller that he is the designated seller's agent, with the brokerage's role as a limited dual agent also disclosed in writing
C
No agency disclosure is required because designated agency is a purely internal brokerage arrangement that does not affect the parties' legal rights
D
Brenda and Eric must each provide the standard agency disclosure form without any reference to designated agency, since the form only covers full representation or dual agency

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Related Topics & Key Terms

Key Terms:

designated_agencyagency_disclosureCGS_20-325climited_dual_agencybrokerage_disclosure

Related Concepts

A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.

The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.

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.

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