Question

Which of the statements is true concerning a designated agency

A. Neither the broker nor a broker's agent act as a dual agent.
B. A broker may designate one agent to represent both buyer and seller.
C. Designated agency is virtually synonymous with dual agency in terms of client relations.
D. Two designated agents may not be involved in the same transaction.

Answer 1

Designated agency is virtually synonymous with dual agency. So, the correct answer is option C.

Step-by-step explanation:

The correct statement concerning designated agency is Option C: Designated agency is virtually synonymous with dual agency in terms of client relations.

Designated agency refers to a situation where a broker designates one agent to represent the buyer and another agent to represent the seller in the same transaction. Both agents have a fiduciary duty to their respective clients and owe them loyalty, confidentiality, and full disclosure.

In dual agency, however, one agent represents both the buyer and the seller in the same transaction. In this situation, the agent owes a fiduciary duty to both parties and must act in their best interests. Dual agency is considered more complex and carries additional responsibilities for the agent.

So, the correct answer is option C.