Question

Mary Smith is broker-in-charge of Smith Realty, which has several affiliated agents. Mary is actively involved in listing and selling properties. Sue Long, a provisional broker with Smith Realty, has a buyer client who has expressed interest in one of Mary's listings. Which of the following agency agreements is permissible in this situation?

- Mary and Sue may act as dual agents.
- Mary and Sue may act as designated agents.
- Mary and Sue may both represent the seller, treating the buyer as a customer.
- Mary may represent her seller, and Sue may represent her buyer.

Answer 1

Answer: Mary and Sue may act as dual agents.

Step-by-step explanation:

Mary and Sue work for the same firm. Therefore, they cannot be single agents. The relationships formed will be either dual agency or designated agency. However, under the law of designated agency, a broker-in-charge cannot be a designated agent with a provisional broker whom they are required to supervise. When a BIC and a provisional broker are representing parties in the same transaction they will always be dual agents.