Kentucky CE Shop Practice Exam

Understanding agency relationships in real estate starts with the idea that there are different ways a licensee may represent people in a transaction, and with what duties the licensee owes those people. The Consumer Guide to Agency Relationships is a disclosure that helps consumers see the full picture: the types of agency relationships available (such as buyer’s agent, seller’s agent, dual agency, or designated agency) and the duties the agent owes to a client under those arrangements. This helps buyers and sellers decide who will represent them and what to expect in terms loyalty, confidentiality, disclosure of information, and the duties the agent has to act with honesty and reasonable care. This is why the best description is that the guide informs consumers about both the kinds of agency relationships that exist and the agent’s duties to a client. It’s not merely a warning about dual agency, nor is it only about duties to the client, and it isn’t itself a consent form to establish an agency relationship.