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Linda is a Kansas broker who has a written seller's agency agreement with homeowner Greg in Lawrence. Buyer Karen approaches Linda and signs a written buyer agency agreement with Linda's firm. Linda's supervising broker authorizes designated agency. Which of the following correctly describes the resulting agency structure under Kansas BRRETA?

Correct Answer

D) Linda's firm may designate separate licensees to represent Greg and Karen, eliminating the dual agency conflict

Under BRRETA, Kansas recognizes designated agency as a method for a brokerage firm to handle in-house transactions where both buyer and seller are represented by the same firm. The broker designates one licensee to represent the seller and a different licensee to represent the buyer, so each party receives full agency representation without the conflicts inherent in dual agency. This requires disclosure and consent from both parties.

Answer Options
A
Linda must withdraw from representing Greg because she cannot represent a buyer and seller in the same transaction
B
Linda automatically becomes a transaction broker for both parties once the buyer agency agreement is signed
C
Linda becomes a dual agent representing both Greg and Karen with the same fiduciary duties to each
D
Linda's firm may designate separate licensees to represent Greg and Karen, eliminating the dual agency conflict

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Related Topics & Key Terms

Key Terms:

BRRETAdesignated_agencydual_agencyagency_typesin_house_transaction

Related Concepts

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.

An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.

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