A real estate team consists of a team leader (licensed broker) and three licensed sales agents. A buyer contacts one of the team agents about a listing held by another team agent. What agency concern arises in this situation?
Correct Answer
C) Designated agency: two team agents on opposite sides of one deal
One brokerage now holds both sides, which in most states is handled by designating a different agent to each party so that confidences do not cross, and in the rest becomes dual agency needing informed consent. Other choices: saying team members always represent the same client is the assumption that causes the problem; nothing makes the team leader automatically the buyer agent, though the broker does supervise both agents; and the buyer certainly need not hire an agent from a different state, which would not solve an in-house conflict anyway.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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