Connecticut salesperson Paul works for Metro Realty. He has been representing buyer Claire for two months under a written buyer representation agreement. Claire is now interested in a property that Metro Realty listed six months ago for seller Mr. Holt. Before showing the property, Paul provides the agency disclosure form and explains dual agency to both Claire and Mr. Holt. Mr. Holt consents in writing, but Claire states she does not want to sign a dual agency consent form — she wants Paul to represent only her interests. Paul's broker suggests that the firm use designated agency: Paul will remain Claire's designated agent, and a different Metro Realty agent, Susan, will be designated as Mr. Holt's agent. Claire agrees to this structure. Which statement most accurately describes the agency relationships in this transaction?
Correct Answer
D) Paul is Claire's designated single agent, Susan is Mr. Holt's designated single agent, and Metro Realty remains a dual agent at the brokerage level
This scenario illustrates Connecticut's designated agency framework precisely. When a buyer refuses dual agency consent but agrees to designated agency, the brokerage may assign separate designated agents to each party. Paul, as Claire's designated agent, acts as her single agent advocate. Susan, as Mr. Holt's designated agent, acts as his single agent advocate. However, Metro Realty as the supervising brokerage holds agency relationships with both principals and therefore remains in a dual agency position at the firm level. This is the accurate and nuanced description of designated agency under Connecticut law — the individual agents are single agents, but the brokerage is a dual agent.
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Related Topics & Key Terms
Key Terms:
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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