Broker Exam: Dual Agency and Designated Sales Associates
I'm studying for the Broker's exam for two states simultaneously and I am trying not to mix up FL law with NY law. I am currently interested in the revised New York State statutes regarding the definition of "Designated Sales Associate." According to the law text, a Designated Sales Associate is "a licensed Real Estate Salesman or Associate Broker, working under the supervision of a Real Estate Broker, who has been assigned to represent a client when a different client is also represented by such real estate broker in the same transaction."
BTW, Florida law prohibits Dual Agency.
In sum and substance, any New York State Real Estate Broker acting as a Dual Agent will be able to assign Real Estate Sales Associates and/or Associate Brokers as representatives for each party to the transaction. Different reps must be used, it can not be the same agent for both parties.
The two main issues arising from a Dual Agency situation include (1) the consumers not being "afforded all fiduciary duties inherent in a single agency arrangement" and (2) the firm/agents "cannot provide the fiduciary duty of undivided loyalty." The New York revised agency disclosure forms now contains a new disclaimer to this fact.
For more information, readers can go to this link to two agency disclosure forms: