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Under Rhode Island law, which agency relationship is created when a single broker assigns one licensee to represent the seller and a different licensee to represent the buyer in the same transaction?

Correct Answer

B) Designated agency, where each licensee exclusively represents their respective client

Under R.I. Gen. Laws § 5-20.6, designated agency occurs when a broker designates one licensee to represent the buyer and another to represent the seller in the same transaction. Each designated agent represents only their respective client exclusively, even though the broker remains a dual agent.

Answer Options
A
Dual agency, where both licensees represent both parties equally
B
Designated agency, where each licensee exclusively represents their respective client
C
Transactional agency, where neither licensee owes fiduciary duties to either party
D
Sub-agency, where the buyer's licensee owes duties to the seller's broker

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Related Topics & Key Terms

Key Terms:

designated_agencyagency_typesri_agency_disclosure_act

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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