Agency
In New Mexico, designated agency means:
AAll agents in a brokerage represent all clients equally
BThe qualifying broker designates specific agents to represent the buyer and seller separately within the same transaction✓ Correct
CThe NMREC assigns agents to specific clients
DThe seller designates which agent they prefer
Explanation
Designated agency allows a qualifying broker to designate separate licensees within the same brokerage to represent the buyer and seller in a transaction, reducing the conflict of interest inherent in dual agency.
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Key Terms to Know
Dual Agency
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate 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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