Broker Maria owns Summit Realty in Idaho. Agent Paul at Summit represents seller Greg, and Agent Rachel at Summit represents buyer Pam — both in the same transaction. Greg and Pam have each signed written consent forms acknowledging the arrangement. Which statement most accurately describes the agency relationship in this transaction?
Correct Answer
A) Summit Realty is acting as a limited dual agent, and Paul and Rachel are each acting as designated agents for their respective clients
Under Idaho law, when a brokerage's two licensees separately represent the buyer and seller in the same transaction, the brokerage itself is acting as a limited dual agent at the firm level, while each individual licensee serves as a designated agent for their respective client. This is the designated agency model within a limited dual agency framework, and it is expressly permitted under Idaho Code § 54-2087 with written informed consent from both parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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