Kentucky law permits designated agency as a way to manage in-house transactions. Which of the following statements about Kentucky designated agency is NOT accurate?
Correct Answer
C) Designated agency eliminates the need for any agency disclosure to the parties
The statement that designated agency eliminates the need for agency disclosure is NOT accurate. Under 201 KAR 11:121, Kentucky requires written agency disclosure to all parties regardless of the type of agency relationship, including designated agency. The parties must be informed of the designated agency arrangement, who their designated agent is, and the broker's dual agent status. Designated agency changes the structure of representation but does not remove the disclosure requirement.
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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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