Under Kentucky law, which of the following best distinguishes a designated agent from a dual agent in an in-house transaction?
Correct Answer
B) A designated agent is appointed by the principal broker to represent one party exclusively, while a dual agent represents both parties in the same transaction
Under 201 KAR 11:121 and KRS Chapter 324, designated agency occurs when the principal broker appoints specific licensees to represent each party separately in an in-house transaction. The designated agent for the buyer represents only the buyer, and the designated agent for the seller represents only the seller. In contrast, a dual agent represents both the buyer and seller simultaneously in the same transaction. Kentucky expressly permits designated agency as a way to provide single-agent representation within the same brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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