AgencyIntermediateCalifornia Exam

In California, a 'designated agency' arrangement allows a broker to:

ARepresent the buyer without any fiduciary duties to the seller
BAssign different agents within the same brokerage to represent each partyCorrect
CAct as a dual agent without written consent
DCollect commissions from both buyer and seller without disclosure

Why Assign different agents within the same brokerage to represent each party Is Correct

Answer B: Assign different agents within the same brokerage to represent each party

Designated agency allows a broker to appoint separate agents within the same brokerage to represent the buyer and seller independently, potentially reducing the conflicts inherent in traditional dual agency.

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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