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AgencyDesignated AgencyMEDIUM

Under Rhode Island law, designated agency allows:

Correct Answer

B) Separate agents within the same brokerage firm to each represent one party independently

Rhode Island law permits designated agency, in which a broker assigns separate licensees within the same firm to represent the buyer and seller independently. This allows each party to receive undivided loyalty from their designated agent, avoiding the conflicts inherent in dual agency.

Answer Options
A
One agent to represent both buyer and seller simultaneously in the same transaction
B
Separate agents within the same brokerage firm to each represent one party independently
C
The state to appoint a neutral agent for each party in a transaction
D
Designated agency is prohibited under Rhode Island law

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Related Topics & Key Terms

Related Topics:

dual agencyagency disclosurefiduciary dutiesin-house transactionsbrokerage relationships

Key Terms:

designated agencydual agencybrokeragefiduciary dutyin-house transaction
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