Which term refers to a type of agency relationship where a designated agent represents a client?

The term that refers to a type of agency relationship where a designated agent represents a client is designated agency. In this context, a designated agency occurs when a broker appoints a specific agent to work on behalf of a client, typically in a real estate transaction. This arrangement allows one agent to act with the authority granted by the broker, ensuring that the client's interests are prioritized while also allowing for a clear line of communication and responsibility.

Designated agency is beneficial because it helps to clarify roles within the brokerage, especially in situations where multiple agents may represent different clients within the same firm. The designated agent is held to the fiduciary duties expected of an agent, such as loyalty, confidentiality, and full disclosure, ensuring that the client's needs and expectations are met effectively.

Other types of agency relationships differ in structure and responsibilities. An exclusive agency typically involves the client granting a single agent the rights to market and sell their property, but the client retains the right to find a buyer independently. Universal agency grants broader authority to an agent to act on behalf of a principal in all matters. Special agency limits the agent’s duties and powers to specific tasks, such as facilitating a real estate sale, without broad authority to make decisions beyond the scope of that task. Each agency