AgencyIntermediateCalifornia Exam

What is 'designated agency'?

AWhen the DRE assigns an agent to a transaction, as commonly applied in brokerage relationships
BWhen a broker designates specific agents to represent the buyer and seller separately within the same brokerageCorrect
CWhen an agent is designated as the only agent in a county, consistent with typical listing agreement terms
DWhen two brokerages agree to share a listing, per standard fiduciary practice in the industry

Why When a broker designates specific agents to represent the buyer and seller separately within the same brokerage Is Correct

Answer B: When a broker designates specific agents to represent the buyer and seller separately within the same brokerage

Designated agency allows a broker in a dual agency situation to assign one agent to represent the buyer and another agent from the same brokerage to represent the seller. This allows each party to have dedicated representation while the broker remains 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

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

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