Broker Kim of Sioux City Realty lists a property for seller Thompson. Another agent in the same firm, Agent Nguyen, has a buyer client interested in Thompson's property. Broker Kim decides to use designated agency, designating Agent Nguyen to represent the buyer and the listing agent to represent Thompson. For this designated agency to be valid under Iowa law, which of the following is required?
Correct Answer
A) Both the buyer and the seller must provide written informed consent to the designated agency arrangement
Under Iowa law, designated agency requires the written informed consent of both the buyer and the seller. Both parties must be informed that the broker is a dual agent at the firm level while their respective designated agents will provide single-party representation. Iowa Administrative Code 193E specifies that the agency disclosure and consent forms must be signed by all parties before designated agency can proceed. Consent from only one party is insufficient.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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