Broker Williams operates a real estate office in Louisville, Kentucky. Agent Chen in his office represents the seller of a property on Maple Street. Agent Davis, also in Broker Williams's office, is working with a buyer who wants to purchase that same Maple Street property. Broker Williams designates Agent Chen as the seller's representative and Agent Davis as the buyer's representative. Under Kentucky law, what is Broker Williams's agency status in this transaction?
Correct Answer
A) Broker Williams is a dual agent
Under Kentucky's designated agency framework established in KRS Chapter 324 and 201 KAR 11:121, when a principal broker designates one licensee to represent the seller and another to represent the buyer in the same transaction, the designated agents act as single agents for their respective clients, but the principal broker retains dual agent status because the broker is ultimately responsible for both sides of the transaction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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