Agency
A 'designated agency' arrangement in Iowa means:
AThe state designates a default agent for unrepresented buyers
BThe broker designates specific licensees within the firm to represent each party exclusively✓ Correct
CThe listing broker designates the MLS as agent
DBoth parties waive all agency representation
Explanation
Designated agency allows a broker to designate individual licensees within the same brokerage to act as exclusive agents for the buyer and seller respectively, reducing the conflicts inherent in classic dual agency.
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Key Terms to Know
Dual Agency
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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