A Louisiana real estate firm has two licensees: Agent Tara represents the seller, and Agent Paul represents the buyer in the same transaction. Both agents work for the same broker. Which type of agency relationship best describes this arrangement under Louisiana law?
Correct Answer
B) Designated agency, because each agent represents a separate party within the same firm
Louisiana law and LREC regulations recognize designated agency as the arrangement in which a broker assigns separate licensees within the same firm to represent the buyer and seller individually. Agent Tara owes fiduciary duties to the seller, and Agent Paul owes fiduciary duties to the buyer. This avoids the conflict of interest inherent in traditional dual agency while allowing the same brokerage to serve both parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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- → A Vermont licensee is asked about a designated agency firm appoints separate agents for buyer and seller. What is the best answer?
- → In Vermont, a licensee has substantial contact with an unrepresented person before a showing. Which statement is correct?
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