Broker Chen owns Cedar Rapids Realty. Agent Lisa represents the seller, and Agent Tom represents the buyer in the same transaction, both working for Cedar Rapids Realty. Broker Chen has designated Lisa and Tom as the respective agents for each party. Which statement BEST describes the agency status of Broker Chen in this designated agency arrangement under Iowa law?
Correct Answer
A) Broker Chen acts as a dual agent representing both the buyer and seller
Under Iowa's designated agency framework, the broker who designates separate agents to represent each party is considered a dual agent at the brokerage level, while the designated agents each provide undivided loyalty to their respective clients. Broker Chen, as the supervising broker, retains a dual agency role because the brokerage firm technically represents both parties. The designated agents (Lisa and Tom) are the ones who can provide full, single-party representation within their designated roles.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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