Maria is a real estate associate working in Calgary. She has a buyer client, John, who entered into a Designated Agency Residential Buyer Brokerage Agreement with her brokerage. Her colleague, David, within the same brokerage, has a seller client, Sarah, who listed her property with his exclusive Designated Agency Residential Seller Brokerage Agreement. If John decides to make an offer on Sarah's property, what is the most accurate description of the agency relationship in this scenario?

Question: Maria is a real estate associate working in Calgary. She has a buyer client, John, who entered into a Designated Agency Residential Buyer Brokerage Agreement with her brokerage. Her colleague, David, within the same brokerage, has a seller client, Sarah, who listed her property with his exclusive Designated Agency Residential Seller Brokerage Agreement. If John decides to make an offer on Sarah's property, what is the most accurate description of the agency relationship in this scenario?

Answer options:

• Maria and David are both operating under common law dual agency, representing both parties. ✅ Both Maria and David are designated agents, each representing their respective clients with full fiduciary duties, within the same brokerage.
• This situation automatically creates a customer relationship for John because John and Sarah are clients of the same brokerage.
• Maria must withdraw from representing John, and David must withdraw from representing Sarah due to a conflict of interest.

Correct answer: Both Maria and David are designated agents, each representing their respective clients with full fiduciary duties, within the same brokerage.

Explanation: In Alberta, Designated Agency allows for two different associates within the same brokerage to act as designated agents for a buyer and seller in the same transaction. Each designated agent owes full fiduciary duties to their respective client. This is a key aspect of Designated Agency as prescribed by RECA Rules.