Agency

In Pennsylvania, what is 'designated agency' and how does it differ from dual agency?

ADesignated agency and dual agency are identical concepts with different names
BIn designated agency, the broker designates specific licensees to represent each party; each designated agent represents only their client while the broker serves as dual agent✓ Correct
CDesignated agency means the buyer selects their own agent without broker involvement
DDesignated agency applies only to commercial transactions over $1 million

Explanation

Designated agency (recognized under Pennsylvania RELRA) allows a broker to designate one licensee to represent the buyer and a different licensee to represent the seller in the same transaction. Each designated agent owes full fiduciary duties to their respective client. The broker, in contrast, serves in a dual-agency capacity overseeing both designated agents. This allows clients to receive more individualized representation than traditional dual agency.

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