A brokerage assigns one licensee to advocate exclusively for the seller and a different licensee in the same office to advocate exclusively for the buyer in the same transaction. What agency arrangement does this describe?
Correct Answer
C) Designated agency
Designated agency is correct because the broker appoints separate licensees within the same firm to each represent one party, allowing each client to retain a fiduciary advocate.
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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.
More General Principles Of Agency Questions
A listing agreement creates an agency relationship between:
A property management agreement between an owner and a property manager typically specifies which of the following?
What is 'designated agency' in the context of a real estate brokerage?
A real estate team receives a referral from a past client. The team leader assigns the referral to a team member. The team member shows the buyer several properties. Who is the buyer's agent?
A buyer's agent compensation can be structured as:
- → A commercial tenant is negotiating a five-year lease for retail space. The tenant hires a tenant representative broker to negotiate lease terms on the tenant's behalf. What agency relationship exists between the tenant and the tenant representative?
- → A property manager signs a lease on behalf of the property owner. The management agreement authorizes the manager to execute leases for terms up to one year. The manager signs a three-year lease with a commercial tenant. What is the likely consequence?
- → A property manager discovers that a rental unit has a significant mold problem. The manager repairs the visible mold but does not inform the property owner about the extent of the damage or the potential liability. Has the property manager violated any agency duty?
- → The minimum requirement for real estate professional advertising is:
- → Extravagant sales claims to attract buyers represent:
- → Licensed agents must ensure:
- → Real estate commissions are typically based on:
- → The document defining the broker-seller relationship is:
- → An agent with complete legal authority to act for a principal in all matters is a:
- → Under the new rules, how can a buyer's agent be compensated?
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Previous Question
After signing a buyer-representation agreement, Parker James enters into an agency relationship and is now owed fiduciary duties by the brokerage. What term best describes Parker James's status?
Next Question
An elderly father is diagnosed with progressive dementia and signs a comprehensive power of attorney in favor of his daughter. The instrument expressly authorizes her to sell his house, manage his investments, pay his bills, sign deeds and contracts, and make virtually any other legal or business decision for him. She is not limited to one transaction or one business sector — her authority sweeps across nearly every aspect of his affairs. When she signs documents, they bind her father with the same legal effect as if he had signed personally. Which classification of agent best describes the daughter's authority?