Salesperson Greg works for ABC Realty in Omaha. Greg is representing buyer Tina, while his colleague salesperson Rachel at the same firm is representing seller Bob in the same transaction. Broker owner Kim has assigned Greg and Rachel to represent their respective clients exclusively. Under Nebraska law, what type of agency arrangement does this describe?
Correct Answer
C) Designated agency, because the broker has assigned individual licensees to represent each party separately
This scenario describes designated agency, which occurs when a qualifying broker assigns specific individual licensees within the same firm to represent each party in a transaction. In designated agency, Greg owes full fiduciary duties to Tina and Rachel owes full fiduciary duties to Bob, even though both work under the same broker. This arrangement allows each party to receive undivided loyalty from their designated agent, unlike dual agency where the entire firm's loyalty is divided. Nebraska recognizes designated agency as a way to manage in-house transactions while preserving client protections.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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