Agent Lisa is a licensee at Frankfort Realty. She is showing a home listed by her own brokerage to buyer client Marcus. Lisa provides Marcus with the required agency disclosure form, which he signs. Marcus then asks Lisa whether she can negotiate a lower price on his behalf. Lisa explains that she is a designated buyer's agent and will negotiate exclusively for Marcus's interests. Later, seller Patricia asks Lisa what price Marcus is willing to pay. How should Lisa respond under Kentucky designated agency rules?
Correct Answer
D) Lisa should refer Patricia to the listing agent because Lisa owes Marcus undivided loyalty as his designated agent
Under Kentucky's designated agency framework and 201 KAR 11:121, a designated buyer's agent owes full fiduciary duties — including the duty of confidentiality and undivided loyalty — to the buyer client. Lisa cannot share Marcus's pricing limit with Patricia. The appropriate response is to direct Patricia to the listing agent (the seller's designated agent), preserving the integrity of the designated agency structure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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