Key Takeaways
- DC recognizes single agency (representing one party only) and dual representation
- Dual representation requires written consent from ALL clients in the transaction
- Designated representatives allow different agents in the same brokerage to represent different parties
- The principal/supervising broker in a designated representative situation is considered a dual representative
- Licensees owe duties of care, skill, diligence, and loyalty to their clients
DC Agency Relationships
DC law defines the types of agency relationships that real estate licensees may have with consumers.
Types of Agency Relationships
Single Agency
A single agent represents only one party in a transaction:
| Single Agent Role | Represents |
|---|---|
| Seller's agent | Seller only |
| Buyer's agent | Buyer only |
| Landlord's agent | Landlord only |
| Tenant's agent | Tenant only |
Single agent duties include:
- Loyalty to the client
- Confidentiality of client information
- Full disclosure of material facts
- Obedience to lawful instructions
- Accounting for all funds
- Reasonable care, skill, and diligence
Dual Representation
Dual representation occurs when a licensee represents both parties in the same transaction.
Requirements for Dual Representation
| Requirement | Description |
|---|---|
| Written consent | ALL clients must consent in writing |
| Disclosure | Full disclosure of the dual relationship |
| Form | Consent may be in the disclosure document |
| Presumption | Signing disclosure = consent |
Important: A licensee may act as a dual representative ONLY with the written consent of all clients to the transaction.
Consent Presumption
Written consent and disclosure shall be presumed to have been given against any client who signs a disclosure as provided under DC law.
Designated Representatives
DC allows brokerages to use designated representatives to avoid dual representation issues:
How It Works
A principal or supervising broker may assign:
- Different licensees affiliated with the broker
- As designated representatives to represent different clients
- In the same transaction
- To the exclusion of all other licensees in the firm
Key Rules
| Rule | Details |
|---|---|
| Not dual representation | If designated rep represents only one client |
| Broker status | Principal/supervising broker IS a dual representative |
| Confidentiality | Designated reps cannot share client info within firm |
Critical Point: Even though designated representatives themselves are not dual representatives, the supervising broker overseeing the transaction IS considered a dual representative.
Duties to Clients
Standard of Care
Licensees owe their clients:
| Duty | Description |
|---|---|
| Care and skill | Exercise reasonable care and competence |
| Diligence | Act promptly and thoroughly |
| Loyalty | Put client's interests first |
| Accounting | Account for all money and property |
| Disclosure | Disclose material facts |
| Confidentiality | Protect client information |
Duties After Termination
After the brokerage relationship ends:
| Duty | Status |
|---|---|
| Account for money/property | Continues |
| Confidentiality of personal/financial info | Continues |
| Active marketing and representation | Ends |
Exam Tip: Confidentiality survives termination of the brokerage relationship.
Compensation and Multiple Parties
Accepting Compensation
A licensee may accept compensation from parties in a transaction, but:
| Situation | Requirement |
|---|---|
| From employer only | Standard arrangement |
| From multiple parties | Full written disclosure required |
| From party not represented | Must disclose to all parties |
Compensation Does Not Determine Agency
Receiving compensation from a party does not automatically create an agency relationship with that party.
What is required for a DC licensee to act as a dual representative?
In a designated representative situation in DC, who is considered a dual representative?
Which duty continues after a brokerage relationship ends in DC?