In Georgia, a designated agent is:
Question & Answer
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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.
An affiliated licensee assigned to represent one party in a dual agency situation
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.
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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