California Real Estate Broker ExaminationAgencyMedium
A real estate brokerage firm represents both the buyer and the seller in the same transaction, with different agents from the firm assigned to each party. Both the buyer and seller have given their informed written consent to this arrangement. This is an example of what type of agency?
- ADesignated agency
- BSingle agency
- CDual agency
- DSubagency
Show answer & explanationAnswer & explanation
Correct answer: A. Designated agency
Designated agency (also known as appointed agency) occurs when a single brokerage represents both the buyer and seller in the same transaction, but different agents within that brokerage are specifically assigned to represent each party exclusively. Both parties must provide informed written consent.
Why the other options are wrong
- B. Single agency means representing only one party in a transaction.
- C. Dual agency means one agent or brokerage represents both buyer and seller without specific agents assigned to each, often with limited fiduciary duties.
- D. Subagency involves an agent representing the principal of another broker, typically the seller.
Designated Agency
A form of agency where a real estate brokerage represents both the buyer and the seller in the same transaction, but designates separate, individual agents within that brokerage to represent each party exclusively, with full fiduciary duties.
- One brokerage, two different agents.
- Each designated agent represents their client exclusively.
- Requires informed written consent from both parties.
- Distinguished from traditional dual agency where one agent represents both.
Memory trick: Single, Dual, Designated, Sub - know your roles!