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Oh AgencyAgency_disclosure_statementHARD

Licensee Ben operates a one-person brokerage in Ohio. Buyer Kate has a signed buyer agency agreement with Ben, and Seller Matt has separately listed his property with Ben. Kate now wants to purchase Matt's property. Which statement most accurately describes Ben's agency options under Ohio law?

Correct Answer

B) Ben cannot use designated agency because there is no second licensee in his brokerage to designate, making dual agency with informed written consent from both parties the only agency option available

Under Ohio law, designated agency requires a brokerage with at least two licensees so that separate agents can be assigned to each party. As a sole practitioner, Ben has no second licensee to designate, making designated agency structurally impossible. However, Ohio law does permit dual agency when both parties provide informed written consent with full disclosure of the limitations that arise when one agent represents both sides. Dual agency with consent is therefore Ben's only in-house option; if either party declines, one must seek outside representation.

Answer Options
A
Ben may proceed as a dual agent without obtaining consent, because both parties are already aware he is their agent
B
Ben cannot use designated agency because there is no second licensee in his brokerage to designate, making dual agency with informed written consent from both parties the only agency option available
C
Ben must refer the transaction to another brokerage because sole practitioners are prohibited from representing both parties in any capacity
D
Ben may convert Kate's buyer agency agreement into a subagency arrangement without her consent to resolve the conflict

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Related Topics & Key Terms

Key Terms:

designated_agencysole_practitionerdual_agencyconflict_of_interestORC_4735
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