Under Rhode Island's Agency Disclosure Act, which of the following statements correctly describes the difference between dual agency and designated agency regarding the broker's role?
Correct Answer
A) In dual agency, one licensee represents both parties; in designated agency, the broker assigns separate licensees to each party, but the broker remains a dual agent
Under R.I. Gen. Laws § 5-20.6, dual agency occurs when a single licensee (or the broker directly) represents both the buyer and seller simultaneously. Designated agency occurs when the broker assigns one licensee to exclusively represent each party. Critically, in designated agency, the broker retains dual agent status even though the designated licensees act exclusively for their respective clients.
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