Broker Linda operates a large brokerage in Billings, Montana. When an in-house transaction arises, Linda appoints agent Carlos to exclusively represent the seller and agent Diane to exclusively represent the buyer. Each agent owes full fiduciary duties only to their respective client. What type of agency arrangement has Linda established?
Correct Answer
B) Designated agency
Under Montana law (MCA Title 37, Chapter 51), designated agency is the arrangement in which the broker appoints specific licensees within the brokerage to exclusively represent each party in an in-house transaction. Carlos represents only the seller and Diane represents only the buyer, each owing full fiduciary duties to their respective client. This avoids the conflict-of-interest problem inherent in dual agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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.
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