According to BCFSA rules, what is 'designated agency' in a real estate transaction?
Correct Answer
C) When a brokerage appoints one licensee to represent the buyer and another the seller in one transaction
Designated agency occurs when the same brokerage has two different licensees each representing one party in a transaction. The brokerage designates one licensee to the buyer and another to the seller, and each licensee owes full fiduciary duties to their respective client.
Why This Is the Correct Answer
Option C is correct because designated agency occurs when a brokerage appoints one licensee to represent the buyer and another to represent the seller in the same transaction. Each designated licensee owes full fiduciary duties to their respective client, and the brokerage must maintain information barriers between the two licensees to prevent the sharing of confidential client information.
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