Sales Associate Beth works for Frontier Realty in Lawton, Oklahoma. Beth has a signed buyer representation agreement with buyer Tom. While searching for properties, Tom becomes interested in a home listed by Beth's own broker at Frontier Realty. Beth's broker has a listing agreement with the seller of that property. Beth's broker designates Beth to represent Tom and designates another Sales Associate, Ryan, to represent the seller. Both parties consent in writing. Which statement correctly describes the resulting agency arrangement?

Correct Answer

B) This is a designated agency arrangement that avoids dual agency at the Sales Associate level.

Oklahoma law specifically recognizes designated agency as a mechanism that allows a broker to assign separate Sales Associates to represent the buyer and seller in an in-house transaction, thereby avoiding dual agency at the individual agent level. With Beth representing Tom and Ryan representing the seller, each party has a dedicated representative. The broker must make the required written disclosures and obtain consent from both parties, which has occurred here.