Agent Nora at Beehive Realty in Salt Lake City has a signed buyer representation agreement with client James. The agreement does not specify a property address. James later decides he wants to make an offer on a home that is listed by Nora's own brokerage. Nora's principal broker, Victor, informs James and the seller in writing that Nora will now represent James as a designated buyer's agent while another agent, Pete, will represent the seller as a designated seller's agent. James and the seller both sign the designated agency consent form. Which statement best describes the resulting legal relationship?
Correct Answer
C) Nora represents James and Pete represents the seller as designated agents, avoiding a dual agency conflict
Under Utah Code Ann. § 61-2f-401 and R162-2f, designated agency is the mechanism Utah law provides to handle in-house transactions without creating a dual agency conflict. When Victor designates Nora exclusively to represent James and Pete exclusively to represent the seller, with written consent from both parties, each party receives individual representation. Nora and Pete each owe fiduciary duties solely to their designated client, not to both parties. This is a key Utah-specific concept.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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