Patricia is a New Jersey broker-salesperson who represents buyer Kevin in his search for a home. Kevin finds a property listed by another agent at the same brokerage. The broker designates Patricia as Kevin's designated agent and the listing agent as the seller's designated agent. Under this arrangement, what is Patricia's fiduciary obligation to Kevin?
Correct Answer
B) Patricia owes Kevin full fiduciary duties as his designated agent, separate from the listing agent's duties to the seller
Under New Jersey's designated agency framework, when a broker designates one licensee to represent the buyer and a different licensee to represent the seller within the same brokerage, each designated agent owes full fiduciary duties exclusively to their respective client. Patricia, as Kevin's designated agent, owes Kevin the complete set of fiduciary duties — loyalty, disclosure, confidentiality, obedience, and reasonable care — just as if she were the only agent involved. The designated agency arrangement is specifically designed to allow full representation within the same firm.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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