Broker James operates a large brokerage in Las Vegas. Salesperson Anna represents the seller, and salesperson Ben (also under Broker James) represents the buyer in the same transaction. Broker James wants to avoid a dual agency situation while still allowing both Anna and Ben to fully represent their respective clients. Which Nevada agency structure should Broker James use?
Correct Answer
B) Designated agency, with Anna and Ben each acting as designated agents for their respective clients
Under NRS 645.252(4), designated agency allows a broker to appoint separate salespersons within the same brokerage to represent the buyer and seller independently. In this structure, Anna acts as the designated agent for the seller and Ben acts as the designated agent for the buyer, each owing full fiduciary duties to their respective client. The broker is considered a dual agent at the brokerage level, but the individual salespersons are not. This structure must be disclosed to both parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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