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A West Virginia real estate firm has two licensees: Agent A represents the seller of a property, and Agent B represents the buyer of the same property. Both agents work for the same broker. The broker has established a written office policy designating each agent to represent only their respective client. Which statement BEST describes the legal status of this arrangement under West Virginia law?

Correct Answer

D) This is a valid designated agency arrangement permitted under West Virginia law

West Virginia law permits designated agency, in which a broker designates separate licensees within the same firm to represent the buyer and seller respectively in the same transaction. With a proper written office policy and appropriate disclosures, each designated agent can provide fiduciary representation to their respective client. This is a recognized and legal agency structure under West Virginia real estate regulations.

Answer Options
A
This is a transaction brokerage because neither agent can provide full fiduciary duties
B
This is a subagency relationship because Agent B represents the listing broker
C
This is an illegal dual agency because both agents work for the same broker
D
This is a valid designated agency arrangement permitted under West Virginia law

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Related Topics & Key Terms

Key Terms:

designated_agencysame_brokerageagency_typesoffice_policy

Related Concepts

A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.

A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.

The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.

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