A New Jersey brokerage firm uses a designated agency policy. The principal broker assigns Agent Rosa to represent the seller and Agent Kevin to represent the buyer in the same in-house transaction. Both clients have provided written consent to designated agency. Which of the following statements correctly describes the principal broker's role in this arrangement?
Correct Answer
A) The principal broker remains a dual agent at the firm level but the designated agents each owe full fiduciary duties to their respective clients
Under New Jersey's designated agency framework, when a broker designates separate agents within the firm to represent each party, the designated agents owe full fiduciary duties exclusively to their respective clients. However, the principal broker — who oversees both agents — is technically in a dual agency position at the firm level. This is why written consent from both parties is required, and the principal broker must remain neutral between the two designated agents.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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