Which term describes a situation in which two licensees from the same Kentucky brokerage represent opposite sides of the same transaction?

The situation described is referred to as dual-licensed dual agency, which involves two licensees from the same brokerage representing opposing parties in a real estate transaction. In this arrangement, both agents are legally permitted to represent their clients' interests, although they are employed by the same brokerage. This concept is essential because it highlights how brokers can facilitate transactions involving their own agents without compromising the duty of loyalty to their respective clients.

In dual agency, the brokerage must ensure that both clients are informed about the arrangement and consent to it, as the agents cannot favor one client over the other. The focus on "two licensees" and their ability to represent contrary interests emphasizes the complexities involved in maintaining impartiality and effective communication within the brokerage.

Understanding this arrangement contrasts with the other options. For example, single-agent representation refers to a scenario in which one agent solely represents one party, thus eliminating any conflict of interest. Designated agency allows a broker to designate separate agents to represent each party in a transaction while still remaining within the same brokerage, ensuring that clients have distinct representation. Exclusive agency typically relates to listing agreements where one agent has the exclusive right to market a property but does not encapsulate the dual representation within a single transaction.