What is a characteristic of designated agency?

In designated agency, a key characteristic is that the broker assigns specific agents to represent different clients within the same brokerage while still maintaining the overall relationship with the firm. In this structure, the broker provides direction and may set policies that guide the agents' actions. However, the agents themselves negotiate independently on behalf of their respective clients. This means that while the broker plays a role in overseeing and providing guidance, the individual agents are responsible for advocacy and negotiation for their clients.

This arrangement helps to avoid conflicts of interest, as each client is represented by a dedicated agent who is not allowed to share confidential information with the other agents in the transaction. The attachment of having the broker guide the agents while maintaining their independence is crucial in facilitating a balance of interests for all parties involved in real estate transactions within that brokerage.