Kansas licensee Carla has a signed buyer agency agreement with buyer James. James is interested in a property listed by Carla's own brokerage firm. The firm's broker proposes that Carla act as a designated buyer's agent while a different firm licensee, Paul, acts as the designated seller's agent, with the broker supervising both. The broker presents a written dual/designated agency consent form to both James and the seller. James is uncomfortable and asks Carla whether he can simply refuse the designated agency arrangement and still purchase the property through the firm. What is the legally accurate answer Carla must give James?
Correct Answer
A) James can refuse the designated agency and instead request that Carla convert to a transaction broker relationship, which requires his written consent
Under K.S.A. 58-30,107, designated agency in Kansas requires written informed consent from both parties — it cannot be imposed without consent. If James refuses the designated agency arrangement, the firm may offer an alternative: Carla (and/or the firm) could operate as a transaction broker with James's written consent, allowing the transaction to proceed without an agency relationship. James has the right to refuse designated agency, and the parties must then negotiate an alternative brokerage arrangement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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