§ 5-20.6-5 - Duties owed by a designated client representative to client.
SECTION 5-20.6-5
§ 5-20.6-5 Duties owed by a designatedclient representative to client. – (a) If an affiliated licensee is appointed by the principal broker or his orher designee to represent a buyer, seller, tenant, or landlord in a real estatetransaction and obtains the written consent of a buyer, seller, tenant, orlandlord with an executed mandatory relationship disclosure to represent thatperson as a designated client representative, the licensee owes the followinglegal duties and obligations to his or her client:
(1) To perform the terms of the client representationcontract, if any, with reasonable skill and care;
(2) To promote the client's best interest in good faith andhonesty;
(3) To protect the client's confidential information duringthe relationship and after its termination;
(4) To perform agreed upon ministerial acts timely andcompetently;
(5) To perform these acts with honesty, good faith,reasonable care and skill; and
(6) To properly account for money or property placed in thecare and responsibility of the principal broker.
(b) A principal broker or his or her designee may appoint oneor 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 thedesignated client representative(s) of a buyer or tenant in the sametransaction; provided; that, all parties to the transaction receive writtennotice that an inherent conflict of interest may exist when designated clientrepresentatives are affiliated with the same principal broker.
(c) A designated client representative of a seller client orlandlord client shall have no duty to protect the confidential information of abuyer customer or tenant customer involved in a transaction with his or herclient. Conversely, a designated client representative of a buyer client ortenant client shall have no duty to protect the confidential information of aseller customer or landlord customer involved in a transaction with his or herclient.
(d) In the event that one or more affiliated licenseesrepresent a seller as a designated client representative and one or moreaffiliated licensees represent the buyer as a designated client representativein the same transaction, the principal broker or his or her designee shall actin a neutral capacity as the transaction coordinator and shall protect theconfidential information of all parties to the transaction and properly accountfor funds.
(e) No affiliated licensees of the principal broker otherthan those licensee(s) specifically designated to represent the client as adesignated client representative shall represent the client or owe any otherduties except that affiliated licensees not appointed to represent a client ina transaction shall have the duty to protect the client's confidentialinformation.
(f) All other affiliated licensees of the principal brokernot appointed as a designated client representative for a party in a realestate transaction may represent another party with conflicting interests inthe same transaction.
(g) The mandatory relationship disclosure shall be presented,explained, and executed at the first personal contact with the prospectivebuyer, seller, tenant, or landlord, or prior to an offer to purchase, whicheveris first to occur.
(h) A designated client representative is exclusivelyresponsible for the performance of any duties owed to the client.
(i) An appointment of a designated client representative by aprincipal broker or his or her designee to represent a client shall not limitthe principal broker's liability or responsibility for any breach of duty owedto a client by the designated client representative.