Agency

A Vermont broker's policy requires all affiliated licensees to use designated agency for in-house transactions. What must the broker do when both the listing agent and buyer's agent are from the same firm?

AAutomatically become a dual agent for both parties
BDesignate separate agents to represent the buyer and seller respectively, with each owing full fiduciary duties to their own client✓ Correct
CTransfer the listing to another firm
DRequire both clients to work without agent representation

Explanation

Under Vermont designated agency, the broker designates one affiliated agent to exclusively represent the buyer and a different affiliated agent to exclusively represent the seller. This allows each party to have a dedicated advocate, avoiding the limitations of dual agency.

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