Agent Rachel is a Montana licensee who has been representing buyer David in his search for a ranch near Dillon, Montana. David has just made an offer on a property listed by Rachel's own brokerage. Rachel's broker wants to establish designated agency to avoid dual agency. Under Montana designated agency, which of the following is TRUE?
Correct Answer
A) The broker becomes a dual agent while Rachel and the listing agent each represent their respective clients exclusively.
Under Montana law, in a designated agency arrangement, the supervising broker occupies a dual agency position because the broker technically represents both parties through the two designated agents. However, each designated agent exclusively represents their respective client and owes full fiduciary duties only to that client. The broker's dual agency position must be disclosed to both parties, and both parties must provide written consent. This is a key nuance of Montana designated agency that distinguishes it from simple dual agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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