What type of agency allows a broker to direct an agent on the actions to take?

In the context of real estate, designated agency specifically refers to a situation where a broker assigns specific agents to represent different clients in a transaction. This arrangement gives the broker the authority to direct the actions of the designated agents, which allows for a clear division of responsibilities while still fulfilling the fiduciary duties owed to the clients being represented.

Through a designated agency, the broker retains oversight and control over the agents’ actions, ensuring that they act in accordance with the overall objectives of the brokerage and the best interests of their respective clients. This type of agency can help minimize conflicts of interest, especially in transactions where the brokerage represents both buyers and sellers.

Understanding this concept helps solidify the roles and responsibilities of each party involved in a real estate transaction and clarifies how agents can operate under the broker's guidance while maintaining their professional duties.