What term describes a licensee authorized by a sponsoring broker to represent a specific principal in a transaction?

The term that describes a licensee authorized by a sponsoring broker to represent a specific principal in a transaction is "designated agent." This designation allows the agent to act on behalf of the principal, which is typically the client, within the context of a real estate transaction. The designated agent is empowered to negotiate and make decisions relating to that particular transaction, ensuring that the interests of the principal are represented effectively.

In real estate, the concept of designated agency is important because it helps clarify the responsibilities and obligations of the agent in relation to the principal, as well as providing an added layer of privacy and personal representation. This arrangement can help to avoid conflicts of interest, especially in situations where multiple agents are working within the same brokerage.

The other options do not accurately reflect the specific role indicated in the question. A "broker" generally refers to a licensed individual who can operate independently and may not represent just one specific principal. A "developer" typically refers to someone involved in creating new properties or real estate projects, without the direct representation role of a licensee. A "transaction coordinator" is focused on the administrative aspects of a real estate transaction, managing timelines, documents, and communication, rather than representing a client directly.