Agency

A North Dakota buyer hires a buyer's broker. Midway through searching for properties, the buyer falls in love with a property listed by the buyer's broker's firm. The best solution to avoid dual agency is:

AThe buyer's broker ignores the conflict
BThe firm establishes designated agency, assigning a different agent to represent the seller✓ Correct
CThe buyer must find a different broker
DThe buyer's broker represents both parties without disclosure

Explanation

Designated agency resolves the potential dual agency conflict by having one licensee in the firm represent the seller and the original buyer's agent represent the buyer, each providing full fiduciary duties to their respective clients.

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