Question

The problem of dual agency can arise within a single brokerage firm if a transaction involves both a listing and a buyer's agency within that firm. One solution that has been attempted is to appoint a separate ____ agent for each party who are to work at "arms length.

1. designated
2. assigned
3. special

Answer 1

Dual agency issues in real estate are often resolved by appointing separate designated agents for the seller and the buyer within a brokerage to prevent conflicts of interest.

Step-by-step explanation:

The problem of dual agency arises when a single brokerage firm is involved in both sides of a real estate transaction, representing both the seller and the buyer.

To address this issue, a common solution is to appoint a separate designated agent for each party. These designated agents operate at an arms length, meaning they act independently and exclusively in the interests of their respective clients, to avoid conflicts of interest within the brokerage firm.