Salesperson Kevin in South Dakota is working under Broker Susan. Kevin has been representing buyer Lisa for several weeks. Lisa finds a property listed by Broker Susan's firm. Susan wants to assign salesperson Brenda to represent the seller in this transaction so Kevin can continue representing Lisa. Both Lisa and the seller sign written consent forms acknowledging the arrangement. Which statement best describes this situation?
Correct Answer
A) This is a properly established designated agency with written consent from all parties
South Dakota law recognizes designated agency as a lawful arrangement where a broker assigns separate licensees within the same firm to represent the buyer and seller in the same transaction. Kevin represents Lisa (buyer) and Brenda represents the seller, each acting as a dedicated agent for their respective client. The written consent from all parties satisfies the disclosure and consent requirements under SDCL 36-21A, making this a properly established designated agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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.
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