Agent Maria works for Palmetto Realty and has listed a home owned by the Hendersons. Buyer Thomas calls Palmetto Realty and is assigned to Agent David, a different licensee at the same firm, to represent him in purchasing the Henderson property. Under South Carolina law, this arrangement is best described as:
Correct Answer
A) Designated agency, because the BIC assigned separate licensees to represent each party
South Carolina law permits 'designated agency,' where the Broker-in-Charge designates different affiliated licensees to represent each party in the same in-company transaction. This avoids full dual agency by ensuring each party has a dedicated representative. The BIC's designation of Maria for the seller and David for the buyer creates a designated agency arrangement, as permitted under S.C. Code Ann. § 40-57-370 and SCREC regulations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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