Agency
In a Nevada transaction with a designated agency arrangement, the designated agent owes fiduciary duties to:
AThe brokerage firm only
BBoth buyer and seller equally
CThe specific client they are designated to represent✓ Correct
DNo one, since it is a neutral arrangement
Explanation
In designated agency, each designated agent owes full fiduciary duties to their specific client (buyer or seller), even though both agents work for the same brokerage. The broker acts as the dual agent.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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