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In Georgia, a designated agent is:

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Question & Answer

Review the question and all answer choices

A

A broker who represents both parties

A is incorrect because a designated agent does not represent both parties simultaneously. That would be traditional dual agency, which involves inherent conflicts of interest. Designated agency specifically separates representation to avoid this problem.

B

An affiliated licensee assigned to represent one party in a dual agency situation

Correct Answer
C

A licensee who only handles paperwork

C is incorrect because a designated agent is not merely a paperwork handler. They have full fiduciary duties to their client, including loyalty, confidentiality, obedience, disclosure, and accounting. They actively advocate for their client's interests.

D

An unlicensed assistant

D is incorrect because designated agents must be licensed professionals, not unlicensed assistants. Only licensees can represent clients in real estate transactions and perform the duties required of a designated agent.

Why is this correct?

B is correct because Georgia law allows designated agency where a broker assigns different affiliated licensees to represent each party in a transaction. This maintains separate representation while keeping both parties within the same brokerage, addressing the conflict of interest that would arise in traditional dual agency.

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