A real estate brokerage has an internal policy where the broker of record designates one salesperson to represent the seller and a different salesperson within the same brokerage to represent an unrepresented buyer interested in the seller's property. The brokerage ensures strict separation of confidential information and that each salesperson acts solely in the best interest of their respective client. What type of agency relationship is this?

Question: A real estate brokerage has an internal policy where the broker of record designates one salesperson to represent the seller and a different salesperson within the same brokerage to represent an unrepresented buyer interested in the seller's property. The brokerage ensures strict separation of confidential information and that each salesperson acts solely in the best interest of their respective client. What type of agency relationship is this?

Answer options: ✅ Designated representation

• Multiple representation
• Dual agency
• Implied agency

Correct answer: Designated representation

Explanation: This scenario describes designated representation, where different registrants within the same brokerage are designated to represent different clients in the same transaction, and the brokerage ensures that confidential information is protected. REBBA 2002 (as amended by TRESA 2002) outlines the requirements for designated representation, specifically that a brokerage can designate one or more registrants to represent a client.