Jennifer holds a Kentucky associate broker license and is affiliated with Bluegrass Realty. Her principal broker, Tom, designates her to represent the seller in a transaction while another affiliated sales associate represents the buyer. Which statement BEST describes Jennifer's role and license classification in this arrangement?
Correct Answer
A) Jennifer acts as a designated agent representing only the seller, while Tom remains a dual agent as the principal broker.
Under Kentucky's designated agency framework (201 KAR 11:121), a principal broker may designate one affiliated licensee to represent the seller and another to represent the buyer in the same transaction. The designated agents (whether sales associates or associate brokers) each act as single agents for their respective clients. However, the principal broker — in this case Tom — remains a dual agent because the broker represents both parties through different designated agents. Jennifer's associate broker classification does not change this analysis.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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