Broker Lisa operates a large Nevada brokerage. Her salesperson, Mark, represents the seller of a $450,000 home, and another salesperson in her office, Diane, represents the buyer. Lisa wants to allow Mark and Diane to each fully represent their respective clients without limitation. What must Lisa do to accomplish this under Nevada law?
Correct Answer
B) Obtain written informed consent from both parties to the limited dual agency and designate Mark and Diane as designated agents
Under NRS 645.255(4), when two salespersons within the same brokerage represent opposing parties, the broker becomes a limited dual agent. To allow Mark and Diane to each fully represent their respective clients, Lisa must obtain written informed consent from both parties to the limited dual agency arrangement and formally designate Mark and Diane as designated agents. Each designated agent can then represent their client's interests more fully within the constraints of the overall limited dual agency.
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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.
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