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AgencyAgency_types_and_definitionsHARD

Broker-in-Charge Angela supervises five licensees at her Columbia office. Licensee Mark, one of her affiliated agents, is also working with his own buyer client on a property listed by another licensee, Beth, at the same office. Angela is concerned about a potential conflict. Under South Carolina law, to avoid dual agency in this in-company transaction, Angela should:

Correct Answer

B) Designate Mark to represent the buyer and Beth to represent the seller, with written consent from both clients

South Carolina law permits designated agency as the mechanism to avoid full dual agency in in-company transactions. The BIC designates Mark to represent the buyer and Beth to represent the seller, with each licensee owing full fiduciary duties only to their respective client. Both clients must provide written informed consent to the designated agency arrangement. This is the specific SC solution to in-company conflicts under S.C. Code Ann. § 40-57-370.

Answer Options
A
Represent both the buyer and seller personally as the BIC, since she supervises all licensees
B
Designate Mark to represent the buyer and Beth to represent the seller, with written consent from both clients
C
Require Mark to refer his buyer client to an outside brokerage to eliminate the conflict
D
Disclose the in-company conflict verbally to both clients and proceed without written designation

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Related Topics & Key Terms

Key Terms:

designated_agencydual_agencybroker_in_chargein_company_transactionwritten_consent

Related Concepts

The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.

An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.

An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.

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