Section 3, Unit 1, Lessons 1& 2

You owe your undivided loyalty to your client, only owing fairness, honesty, & proper accounting to other parties.

• Sub-Agency

• Seller Agency

• Single Agency

• Dual Agency

It's your duty to advocate solely for the seller & seek a sale of the property at the best price available.

• Single Agency

• Dual Agency

• Sub-Agency

• Seller Agency

If a client asks for advice that's outside of your expertise, you should:

• Refer the client to an expert

• Refer them to a different agent in your firm that has been there longer

• Help them as much as you can

When a licensee from a competing firm brings the buyer to the deal & works under the listing agent representing the seller instead of the buyer.

• Seller Agency

• Single Agency

• Sub-Agency

• Single licensed dual agency

A real estate brokerage firm, and all brokers & agents for that firm, can act in a fiduciary capacity for both the buyer & seller in the same transaction.

• Dual Agency

• Single Agency

• Sub-Agency

• General Agency

Exists when 1 licensee represents both the buyer & seller in a transaction.

• Single licensed dual agency

• Dual licensed dual agency

• Designated Agency

Exists when 2 agents from the same brokerage represent the buyer & seller in a transaction.

• Designated Agency

• Single licensed dual agency

• Dual licensed dual agency

The broker-in-charge designated 2 of the broker's agents: 1 to represent the buyer & 1 to represent the seller.

• Dual licensed dual agency

• Single licensed dual agency

• Designated Agency

Answer explanation

The 2 agents are designated agents & the broker is the dual agent.

Allows each client to have the benefits of single agency, but the brokerage earns commission from both sides of the transaction.

Which fiduciary duty is legally impossible with dual agency?

• Accounting

• Reasonable Skill & Care

• Confidentiality

• Obedience

• Undivided Loyalty

What are the 3 ways you can legally participate in dual agency?

• If state laws allow it

• If you have written consent from all parties

• If you have a dual license

• If your brokerage allows it

• If you have at least 10+ years of experience