TRESA will authorize “Designated Agency”.
That will be fine and save some significant conflicts of interest.
The appointment is made by the Brokerage.
The Brokerage appoints Bob to act on behalf of Fred, the purchaser.
This means that no other person at the Brokerage owes fiduciary duties to Fred. Just Bob!
So, what’s the problem?
Bob is a brand new agent and has never done a deal. This would be his first. Ordinarily, the Brokerage would provide assistance to Bob through the Broker of Record or the Manager at the office. However, both are precluded now that we have “designated agency”. If they had “inside information”, that would make them “agents” for Fred and would create multiple representation. The entire designated agency arrangement was to avoid this.
There is a solution. The Brokerage could appoint Martha as an additional designated agent for Fred. Martha has lots of experience and will supervise and oversee Bob in this transaction. She has access to all the confidential information and owes fiduciary duties just to Fred, the purchaser. The Seller in this transaction is separately represented.
Brian Madigan LL.B., Broker
Comments 1
I think an Unlimited number of registrants can be designated as Reps for a Buyer or a Seller – what do you think?
This is first time ‘mentor’ has been mentioned in these early days of explaining the “solution” to the “problem” of one-registrant double-ending a trade (regardless of who was/wasn’t a customer and whether anyone was a client)