Leilani is a licensed salesperson in Hawaii working under Broker Kealoha. A buyer named Marcus contacts the brokerage wanting to purchase a property that the brokerage has listed for seller Akana. Broker Kealoha designates Leilani to represent Marcus and another salesperson, Koa, to represent Akana. What type of agency relationship exists at the brokerage level?
Correct Answer
D) Designated agency
This is designated agency. Under Hawaii Administrative Rules Title 16, Chapter 99, when a brokerage represents both the buyer and the seller in the same transaction, the broker may designate separate licensees within the firm to represent each party. At the brokerage level, dual agency exists, but each designated licensee acts as a single agent for their respective client, reducing the conflict inherent in full dual agency.
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