Broker Sandra operates a brokerage in Georgetown, Delaware. Salesperson Ben represents seller Alice, and salesperson Fiona represents buyer Derek — both in the same transaction. Sandra has set up information barriers between Ben and Fiona so that neither shares client confidences with the other. Alice and Derek each signed written consent forms acknowledging the in-house nature of the transaction. Sandra has NOT personally signed any consent form designating herself as a dual agent. Under Delaware agency law, which of the following most accurately describes Sandra's role in this transaction?
Correct Answer
D) Sandra functions as a designated broker overseeing designated agents, but her firm may be considered a dual agent at the brokerage level
Under Delaware agency law, when a brokerage has designated separate agents (Ben and Fiona) to represent each party in the same transaction, the individual agents are designated agents with fiduciary duties to their respective clients. However, at the brokerage level, the firm — and by extension the supervising broker Sandra — may be considered a dual agent because the firm technically represents both parties through its agents. The written consent forms and information barriers are critical to making this designated agency arrangement lawful. Sandra's role as the broker responsible for both agents means she has supervisory responsibilities and the firm bears dual agency status at the entity level.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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