Within one Massachusetts brokerage, Agent A is specifically assigned to represent the seller while Agent B is specifically assigned to represent the buyer. What relationship is this?
The correct answer is B, Designated agency. Designated agency allows different affiliated licensees within the same brokerage to be specifically assigned to represent opposing clients in the same transaction, subject to Massachusetts disclosure and consent requirements.
The designated seller ' s agent owes fiduciary duties to the seller, while the designated buyer ' s agent owes fiduciary duties to the buyer. The appointing or supervising broker may occupy a dual-agency position under the designated-agency structure.
The purpose is to permit each client to receive individual advocacy while acknowledging that both agents operate within the same brokerage organization.
Designated agency should not be confused with undisclosed dual agency. The parties must understand and consent to the structure. It also differs from facilitation, where the licensee assists with the transaction without acting as a fiduciary agent for the consumer.
Study Guide Reference: Agency — Designated Agency and Brokerage Relationships.
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