AgencyIntermediateCalifornia Exam

A 'designated agency' arrangement in California refers to:

AA government-appointed agent managing foreclosed properties, consistent with typical listing agreement terms
BA broker designating specific salespersons to represent each party in a transaction, limiting dual agencyCorrect
CAn agent designated by the DRE to handle complaints against other agents, per standard fiduciary practice in the industry
DA seller who designates a family member to act as their real estate agent, under standard California agency practice

Why A broker designating specific salespersons to represent each party in a transaction, limiting dual agency Is Correct

Answer B: A broker designating specific salespersons to represent each party in a transaction, limiting dual agency

In designated agency, a broker designates one licensee from their office to represent the buyer and a different licensee to represent the seller in the same transaction. This allows each party to receive more focused representation than traditional dual agency, though the broker may still technically be a dual agent.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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