2.1 Nebraska Agency Relationships

Nebraska agency relationships are governed by the Nebraska Real Estate License Act, Article 24 (Neb. Rev. Stat. 76-2401 and following), which specifically addresses brokerage agency. Nebraska's framework differs from the common-law agency many candidates learn for the national portion, so study these definitions carefully.

Why Nebraska Has a Statutory Agency Model

Rather than rely solely on common-law fiduciary doctrine, Nebraska codified agency to make consumer relationships predictable and disclosed. The statute names each relationship, fixes the duties owed, and requires brokerages to tell consumers - in writing - which relationships they offer. The result: a consumer should always know who represents whom.

The Written Brokerage Policy (Section 76-2420)

Section 76-2420 requires every designated broker to adopt a written policy that:

• Identifies and describes the agency relationships the firm will offer,
• Offers at least one type of relationship, and
• May offer any combination of the allowed relationships.

This policy must be made available to consumers along with the agency disclosure. It is the firm-specific complement to the statute: the statute lists what is legally possible in Nebraska; the policy tells consumers what this brokerage actually does.

Types of Agency Relationships

Single agency

A single agent represents only one party and owes that party full statutory duties.

Single-agent duties include loyalty, confidentiality, full disclosure of material facts to the client, obedience to lawful instructions, accounting for funds, and reasonable care and diligence.

Limited agency (the Nebraska default)

Nebraska uses the term limited agent. A licensee working with a buyer or tenant is a limited agent by default unless there is a written agreement establishing full agency or the designated broker has appointed the licensee as an agent.

Key concept: "Limited agent" is Nebraska's statutory default for the consumer side - it provides defined duties without the full fiduciary scope of a written single-agency engagement. Note that LB 187 (below) now requires a written buyer contract, narrowing how long the default applies in practice.

Dual agency

Dual agency arises when one licensee, or the same brokerage, represents both the buyer and the seller in the same transaction. Nebraska permits dual agency, but only with safeguards:

A dual agent becomes a neutral facilitator. They may move the transaction forward and share factual information, but they may not reveal confidential information such as the highest price a buyer will pay or the lowest a seller will accept.

Warning: Dual agency without informed written consent from both parties is undisclosed dual agency - a serious license-law violation.

Designated agency (Section 76-2427)

Section 76-2427 lets a designated broker appoint, in writing, one or more affiliated licensees to act as the limited agent of a client to the exclusion of all other affiliated licensees in the firm.

Designated agency lets one brokerage represent both sides of a deal through different agents - the listing agent represents the seller, a separate appointed agent represents the buyer - so each consumer keeps a true advocate. This is distinct from dual agency, where a single neutral agent serves both.

Written Buyer Representation Contract (Effective July 1, 2025 - LB 187)

Legislative Bill 187, signed in 2025 and effective July 1, 2025, makes a written buyer representation contract mandatory before a licensee acts as a buyer's agent in a residential transaction.

LB 187 aligns Nebraska statute with the national practice changes from the 2024 NAR settlement, but it is now state law, not just an association rule.

Exam tip: Two contents are specifically required by LB 187 - how the agent is compensated and a definite expiration date. Expect a question on both.

Comparing the Four Relationships

Subagency note: Nebraska also recognizes subagency, where another brokerage works on behalf of the listing broker's client (the seller). A seller's listing broker may offer subagency only if the firm's written policy allows it, and a cooperating firm must affirmatively accept subagency rather than have it imposed.