At XYZ Realty in Massachusetts, salesperson David has been working exclusively with buyer Rachel to find a home. Rachel has found a property listed by salesperson Karen, who works at the same brokerage, XYZ Realty. The broker at XYZ Realty wants to keep both clients in-house and designates David to represent Rachel and Karen to represent the seller. Both clients are informed and consent in writing. What type of agency relationship has been created?
Correct Answer
A) Designated agency, where each client has a dedicated licensee advocate within the same brokerage
Under 254 CMR 3.00, designated agency is a recognized agency relationship in Massachusetts where a broker assigns specific salespersons within the same brokerage to exclusively represent each party. David is designated to represent Rachel and Karen is designated to represent the seller. Each designated agent can advocate fully for their respective client, unlike in dual agency where one licensee represents both parties with limited duties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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