When a brokerage enters into a designated representation agreement, who is ultimately responsible for ensuring that the brokerage's policies and procedures regarding confidentiality and client representation are followed?

Question: When a brokerage enters into a designated representation agreement, who is ultimately responsible for ensuring that the brokerage's policies and procedures regarding confidentiality and client representation are followed?

Answer options:

• The individual designated representatives involved in the transaction.
• The clients themselves, as they signed the agreement. ✅ The broker of record of the brokerage.
• The real estate lawyer for the transaction.

Correct answer: The broker of record of the brokerage.

Explanation: The broker of record is ultimately responsible for the overall operation of the brokerage and for ensuring compliance with all regulatory requirements, including the establishment and adherence to policies and procedures for designated representation to protect client interests and confidential information. This is a core responsibility under REBBA 2002.