Sarah is a Vermont licensee working for Green Mountain Realty. She is the listing agent for a property owned by Tom. Marcus, a buyer, contacts Green Mountain Realty and is assigned to licensee David, who works in the same office. David wants to show Marcus the property listed by Sarah. Under Vermont's designated agency framework, which of the following best describes this arrangement?
Correct Answer
B) David represents Marcus and Sarah represents Tom, each owing full fiduciary duties to their respective client
Under Vermont's designated agency rules (26 V.S.A. § 2296 and VREC Rule 4.1), when a brokerage has designated separate licensees to represent the buyer and seller in the same transaction, each designated agent owes full fiduciary duties to their respective client. David, as Marcus's designated agent, owes full loyalty to Marcus, while Sarah, as Tom's designated agent, owes full loyalty to Tom.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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.
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