Sarah is a licensed salesperson at Mountaineer Realty in Charleston, West Virginia. She is working with a buyer named Tom. Her broker, David, has listed a home that Tom wants to purchase. David assigns Sarah to represent Tom and another licensee in the firm to represent the seller. Which type of agency relationship has been created?
Correct Answer
B) Designated agency
West Virginia law recognizes designated agency, in which the broker designates different licensees within the same brokerage to represent the buyer and the seller separately in the same transaction. Here, Sarah is designated to represent Tom (buyer) and another licensee is designated to represent the seller, creating a designated agency relationship. This allows each client to receive representation without the full conflict of dual agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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