Broker David at Lexington Properties has both a listing for seller Carol and a buyer client named Steve who is interested in Carol's home. David assigns licensee Rachel to represent Carol and licensee Paul to represent Steve. Under Kentucky's designated agency framework, which of the following statements correctly describes the agency relationships in this transaction?
Correct Answer
B) Rachel and Paul are single agents for their respective clients, and David is a dual agent
Under Kentucky's designated agency framework, when a broker designates one licensee to represent the buyer and another to represent the seller in the same transaction, those designated agents act as single agents for their respective clients. However, the supervising broker — David in this case — retains a dual agency relationship because the broker's firm represents both parties simultaneously. This structure is expressly recognized under 201 KAR 11:121.
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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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