Broker Patel in Broken Arrow, Oklahoma is the designated broker for a large brokerage. Sales Associate Kim represents buyer Lopez, and Sales Associate Torres represents seller Grant — both working under Broker Patel's brokerage. Both Kim and Torres have signed separate representation agreements with their respective clients. Lopez wants to purchase Grant's property. Broker Patel wants to allow Kim and Torres to each continue representing their respective clients independently. What agency arrangement does Oklahoma law recognize for this situation?
Correct Answer
B) Designated agency, where each Sales Associate independently represents their own client with Broker Patel serving as a neutral supervisor
Oklahoma law recognizes designated agency as the arrangement where a broker designates specific licensees within the same brokerage to represent the buyer and seller independently in the same transaction. Under this arrangement, Sales Associate Kim exclusively represents buyer Lopez and Sales Associate Torres exclusively represents seller Grant, while Broker Patel serves as a neutral supervisory broker who does not advocate for either party. This avoids the full conflict of dual agency while keeping the transaction within one brokerage. Proper disclosure and consent are still required under Title 59 O.S. § 858-354.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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