A registrant working for a brokerage has a buyer client interested in a property listed by another registrant from the same brokerage. To proceed with the transaction, what must occur regarding agency?

Question: A registrant working for a brokerage has a buyer client interested in a property listed by another registrant from the same brokerage. To proceed with the transaction, what must occur regarding agency?

Answer options:

• The brokerage must immediately terminate representation for one of the clients. ✅ The buyer and seller must agree to designated representation, provided the brokerage has policies in place.
• The registrant representing the buyer must refer their client to another brokerage.
• The registrant representing the seller must withdraw their listing.

Correct answer: The buyer and seller must agree to designated representation, provided the brokerage has policies in place.

Explanation: If a brokerage represents both a buyer and a seller in the same transaction, this can lead to multiple representation or, if the brokerage has the appropriate policies and procedures, designated representation. With designated representation, the brokerage designates different registrants to act for each client, maintaining separate duties and confidentiality. Both parties must consent in writing.