Broker David at Providence Properties designates agent Karen to represent the seller and agent Mike to represent the buyer in the same in-house transaction. Under Rhode Island's Agency Disclosure Act, what is Broker David's agency status in this designated agency arrangement?
Correct Answer
C) David remains a dual agent, while Karen and Mike act as exclusive agents for their respective clients
Under R.I. Gen. Laws § 5-20.6, in a designated agency arrangement, the broker retains dual agent status because the broker's firm represents both parties. However, the designated licensees (Karen and Mike) each act exclusively for their respective clients, providing those clients with undivided loyalty at the licensee level.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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