§ 5-20.6-5. Duties owed by a designated client representative to client.
(a) If an affiliated licensee is appointed by the principal broker or his or her designee
to represent a buyer, seller, tenant, or landlord in a real estate transaction and
obtains the written consent of a buyer, seller, tenant, or landlord with an executed,
mandatory relationship disclosure to represent that person as a designated client
representative, the licensee owes the following legal duties and obligations to his
or her client:
(1) To perform the terms of the client representation contract, if any, with reasonable
skill and care;
(2) To promote the client's best interest in good faith and honesty;
(3) To protect the client's confidential information during the relationship and after
its termination;
(4) To perform agreed-upon ministerial acts timely and competently;
(5) To perform these acts with honesty, good faith, reasonable care, and skill; and
(6) To properly account for money or property placed in the care and responsibility of
the principal broker.
(b) A principal broker or his or her designee may appoint one or more affiliated licensees
to act as the designated client representative(s) of a seller or landlord and one
or more affiliated licensees to act as the designated client representative(s) of
a buyer or tenant in the same transaction; provided; that, all parties to the transaction
receive written notice that an inherent conflict of interest may exist when designated
client representatives are affiliated with the same principal broker.
(c) A designated client representative of a seller client or landlord client shall have
no duty to protect the confidential information of a buyer customer or tenant customer
involved in a transaction with his or her client. Conversely, a designated client
representative of a buyer client or tenant client shall have no duty to protect the
confidential information of a seller customer or landlord customer involved in a transaction
with his or her client.
(d) In the event that one or more affiliated licensees represent a seller as a designated
client representative and one or more affiliated licensees represent the buyer as
a designated client representative in the same transaction, the principal broker or
his or her designee shall act in a capacity as the transaction coordinator and shall
protect the confidential information of all parties to the transaction and properly
account for funds.
(e) No affiliated licensees of the principal broker, other than those licensee(s) specifically
designated to represent the client as a designated client representative, shall represent
the client or owe any other duties except that affiliated licensees not appointed
to represent a client in a transaction shall have the duty to protect the client's
confidential information.
(f) All other affiliated licensees of the principal broker not appointed as a designated
client representative for a party in a real estate transaction may represent another
party with conflicting interests in the same transaction.
(g) A designated client representative is exclusively responsible for the performance
of any duties owed to the client.
(h) An appointment of a designated client representative by a principal broker or his
or her designee to represent a client shall not limit the principal broker's liability
or responsibility for any breach of duty owed to a client by the designated client
representative.