Pinecrest Realty in Bangor, Maine has a listing for a lakefront property. Associate broker Mark represents the seller, and associate broker Lisa, from the same firm, is working with a buyer interested in that property. The designated broker assigns Mark and Lisa to represent their respective clients separately. What type of agency arrangement does Maine law recognize in this situation?
Correct Answer
B) Designated agency
Maine's Real Estate Brokerage Act explicitly codifies 'designated agency,' which allows a designated broker to assign different licensees within the same firm to represent the buyer and seller separately. This avoids the conflicts inherent in traditional dual agency by keeping each agent's loyalties separate, even though they work for the same brokerage.
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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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