7.6.1 Dual Agency: Introduction Flashcards

7.6.1 Dual Agency: Introduction Flashcards

Bob should not have offered to appoint Steve as the designated agent and Steve should not undertake to serve as a designated agentSince Bob is a broker in charge, he can not have a provisional broker who works under him representing the other party in the transaction. Steve himself should also refrain from undertaking to serve as the designated agent in this scenario.Megan wishes to purchase some property and approaches a real estate firm for assistance. She has not initiated any buyer agency relation with the firm but wishes to view some of the firms listed property. The firm offers her a dual agency option directly and explains how the agent will work and explains its benefits to her. Megan accepts the contract and continues with the transaction. Did the firm act ethically in this scenario?No, the firm should not have offered a dual agency agreement as there was no existing agency relationship with Megan.No, the firm should have explained the consequences of dual agency as well as Megan could lead a court to conclude that there was no informed consent.Yes, the firm acted ethically, and no problem should arise.Designated agency is a form of dual agency and does not change the status of the firm as a dual agent even though designated brokers are representing the interests of the buyer and seller respectively.Designated agency should only be used for in-house dual agency situations. It is not dual agency when an agent is showing properties listed by their firm as a seller subagent.Multiple agents can be designated to serve the interests of one party in a transaction.Designated agency should be authorized at the time of presentation of the first offer to buy or sell has been made.

TAKE NOTE

Designated agency is an optional approach where the firm acting as a dual agent for a seller and buyer can appoint an individual agent to fully represent the interests of only the seller and only the buyer respectively. Usually one agent is designated to fully represent one party. While these agents deal with the buyer and seller, they act as though they represent different firms representing different principals even though they actually represent the same firm and represent both principals.A firm should not consider designated agency in the

following situations:

The designated agent is expected to solely represent the interests of his or her designated client. The Commission rule prohibits the designated agent from disclosing confidential information about the client to any other party involved in the transaction.What is the benefit of 'designated agency'?The broker-in-charge can act as a designated broker if the broker representing the other party in the transaction is not

a provisional broker as their mandatory supervision duties would not interfere with that broker.Why is designated agency considered an approach to minimize the problems associated with dual

agency?Because it is not a form of dual agencyBecause the designated agents can perform all their duties without any hindrancesBecause the agent's duties are limited but not as much as a regular dual agentBecause it is easier for the parties to communicate with each other and the agent involved No, the firm should have explained the consequences of dual agency as well as Megan could lead a court to conclude that there was no informed consent.Since there was no existing agency relationship between the client and the firm, the firm acted in the right way and offered Megan the option of dual agency. But the firm did fail to explain the consequences of the dual agency and hence Megan could win her argument in a court of law.An agent in a dual agency must not represent more than one party in a transaction without the knowledge and consent of the other parties involved in that transaction.An agent in a dual agency must not represent more than one party in a transaction without the knowledge and consent of the other parties involved in that transaction.A written dual agency agreement must be provided and consented by all parties involved in a transaction and must be provided at the time the first offer to buy or sell is made.

dual agency:An agent in a dual agency must not represent

more than one party in a transaction without the knowledge and consent of the other parties involved in that transaction.A written dual agency agreement must be provided and consented by all parties involved in a transaction and must be provided at the time the first offer to buy or sell is made.If an existing agency relationship does not exist, the dual agency agreement must explain all the duties of the agent under buyer agency contract and the consequences of dual agency along with any modifications of the agent's duties under the contract.

Designated agency:Designated agency is a form of dual

agency even though designated agents are treated as individually representing agents to the parties involved.The firm must specify the name of the agent in charge of authorization and appointing the designated agents.Disclosure prohibitedAnika is acting as a dual agent for Sophia Seller and Bernard Buyer. Which of these facts would Anika be required to disclose to Bernard? Bernard needs to close the sale urgently and might be willing to pay more than the asking price.CorrectThe Commission Rule 21 NCAC 58A.0104(k) prohibits the agent from disclosing the motivation of the seller unless required to do so by statutes or rules.

Determine if the following statement is correct or incorrect:

A broker's supervisor can act as a designated agent for the other party in a transaction.CorrectIncorrect

Agent's responsibilities:An agent's duties may be limited

and amended in accordance with the Commission's Rules and Laws to reduce the risk of being a dual agent.In terms of dual agency or designated agency, a broker who is representing or designated to represent the interests of either only the buyer or only the seller, must not disclose

(unless required to by a particular law or statute): Any

conditions of saleThe seller's motivation for engaging in that transactionOther personal and confidential information

derived from the other party in a transaction

dual agency:An agent in a dual agency must not represent

more than one party in a transaction without the knowledge and consent of the other parties involved in that transaction.A written dual agency agreement must be provided and consented by all parties involved in a transaction and must be provided at the time the first offer to buy or sell is made.If an existing agency relationship does not exist, the dual agency agreement must explain all the duties of the agent under buyer agency contract and