Under Iowa law, which type of agency relationship allows a broker to designate one agent within the firm to represent the seller and a different agent within the same firm to represent the buyer, thereby avoiding traditional dual agency conflicts?
Correct Answer
B) Designated agency
Iowa law expressly permits designated agency, where the broker designates separate agents within the same brokerage to represent the buyer and seller independently. This structure avoids the inherent conflicts of dual agency by allowing each designated agent to provide full fiduciary representation to their respective client. Iowa Administrative Code 193E and Iowa Code Chapter 543B recognize designated agency as a distinct and permissible agency type.
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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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- → A Vermont licensee is asked about a designated agency firm appoints separate agents for buyer and seller. What is the best answer?
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