Designated Agency & Conflict of Interest Flashcards

Flashcards about Designated Agency & Conflict of Interest

Common Law Presumption of Attributed Knowledge

It assumes that all real estate licensees within a brokerage share knowledge and confidential information about clients with each other.

Brokerage Responsibilities Under Common Law

They must disclose all pertinent information to clients while maintaining the confidentiality of the clients' information.

Why Conflicts of Interest Are Problematic

Because they often involve clients with competing interests and clients typically want to keep working with their chosen real estate licensee.

Designated Agency

A system where the agency responsibilities are assigned to individual real estate licensees instead of the entire brokerage, avoiding shared knowledge and conflicts of interest.

RECA's Solution to Conflicts of Interest

The concept of designated agency.

How Designated Agency Negates Common Law

It ensures that licensees do not share client information, thus rebutting the presumption of attributed knowledge.

Adoption Date of Designated Agency

On March 1, 2008, after recommendations from the Agency Task Force (ATF).

Brokerage's Role Under Designated Agency

The brokerage holds a neutral position, facilitating transactions and maintaining confidentiality without advocating for either client.

Requirement for Practicing Designated Agency

A written service agreement must designate agency responsibilities to individual licensees.

Broker's Responsibility in Designated Agency

To ensure compliance across the brokerage and maintain neutrality and confidentiality while supervising the designated licensees.