A commercial broker allows one sales associate to act as a single agent for the buyer and another for the seller, both with assets over $1 million. The arrangement is known as

A commercial broker allows one sales associate to act as a single agent for the buyer and another for the seller, both with assets over $1 million. The arrangement is known as

• A. Dual agency
• B. Designated sales associate
• C. Transaction brokerage
• D. Single agency

Answer: (B)

Designated agency is when a broker designates separate sales associates to represent the buyer and the seller in the same transaction. Each designated associate acts as the single agent for their respective client, delivering fiduciary duties—confidentiality, loyalty, disclosure, and full representation—to that client while the broker supervises both assignments. This arrangement keeps both parties with their own agent, avoiding the conflicts that can arise if one licensee tried to represent both sides. It’s not about the asset value; it’s about having different agents for each party in the deal. In contrast, dual agency would involve one licensee representing both sides, and transaction brokerage would involve the broker facilitating without fiduciary duties to either party.

Designated agency is when a broker designates separate sales associates to represent the buyer and the seller in the same transaction. Each designated associate acts as the single agent for their respective client, delivering fiduciary duties—confidentiality, loyalty, disclosure, and full representation—to that client while the broker supervises both assignments. This arrangement keeps both parties with their own agent, avoiding the conflicts that can arise if one licensee tried to represent both sides. It’s not about the asset value; it’s about having different agents for each party in the deal. In contrast, dual agency would involve one licensee representing both sides, and transaction brokerage would involve the broker facilitating without fiduciary duties to either party.