A brokerage practices designated agency. The broker discovers that the designated buyer's agent and the designated seller's agent, both affiliated with the same brokerage, have been sharing their respective clients' confidential information with each other during the transaction. Under Ohio law, who may face disciplinary consequences?
Correct Answer
D) Both designated agents and potentially the supervising broker, for violations of the confidentiality duties inherent in designated agency
Under Ohio's designated agency framework, each designated agent owes full fiduciary duties — including confidentiality — exclusively to their assigned client. Sharing a client's confidential information with the opposing designated agent within the same brokerage defeats the purpose of designated agency and constitutes a breach of fiduciary duty for both agents. Under ORC § 4735.70, the supervising broker also bears responsibility for ensuring affiliated licensees comply with agency obligations, and may face disciplinary action for failure to supervise.
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