Sandra is an Oregon broker affiliated with Cascade Realty. She has been working with buyers Kevin and Lisa for several weeks. Kevin and Lisa decide they want to write an offer on a home listed by another broker at Cascade Realty. Sandra's principal broker informs her that the firm will use designated agency to handle this transaction. What does designated agency mean in this context?
Correct Answer
D) A separate licensee within Cascade Realty will be assigned to represent the sellers while Sandra continues to represent the buyers
Under Oregon law, designated agency allows a principal broker to assign different licensees within the same firm to represent the buyer and seller independently in the same transaction. This avoids the need for a disclosed limited agency arrangement because each party has their own dedicated representative, even though they are from the same brokerage. ORS 696.800–696.890 recognizes this structure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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