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Washington broker Nina is a designated broker at a firm. Broker Alex, one of her affiliated brokers, represents seller Owen. Another affiliated broker at the same firm, Broker Beth, represents buyer Priya. Neither Alex nor Beth is representing both parties. Under RCW 18.86, which statement BEST describes this arrangement?

Correct Answer

A) This is lawful designated dual agency because different brokers at the same firm represent each party, and the firm is the dual agent

Under RCW 18.86, when two different brokers affiliated with the same brokerage represent opposing parties in the same transaction, the brokerage (and designated broker) is considered a dual agent, while each individual broker continues to act as a single agent for their respective client. This is known as 'designated agency' or 'in-company dual agency.' Written consent from both parties is required, and the individual brokers maintain their respective single-agency duties, but the firm itself is in a dual agency position.

Answer Options
A
This is lawful designated dual agency because different brokers at the same firm represent each party, and the firm is the dual agent
B
This arrangement is prohibited because brokers at the same firm can never represent opposing parties in the same transaction
C
Alex and Beth are each acting as single agents; no dual agency exists because they represent different parties
D
Nina must personally supervise all negotiations to prevent a conflict of interest between Alex and Beth

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Related Topics & Key Terms

Key Terms:

designated_agencyin_house_dual_agencyrcw_18_86brokerage_dual_agencysingle_agent
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