A Minnesota brokerage firm uses designated agency to handle in-house transactions. Agent Sofia is designated to represent seller Mark, and agent Liam is designated to represent buyer Dana, in the purchase of Mark's property. Which of the following statements correctly describes the disclosure obligations in this designated agency arrangement?
Correct Answer
D) Both Mark and Dana must receive the Agency Disclosure Statement and provide written consent to the designated agency arrangement, and the supervising broker acts as a dual agent
Under Minnesota law, designated agency is a form of dual agency at the brokerage level. Both Mark and Dana must receive the Agency Disclosure Statement and provide informed written consent to the designated agency arrangement. The supervising broker, who oversees both Sofia and Liam, is considered a dual agent — representing both parties at the brokerage level — while each designated agent represents only their respective client. This arrangement must be fully disclosed and consented to in writing by both parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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