Which statement best describes designated agency's fiduciary duties?

• A. Two licensees represent buyers and sellers separately with fiduciary duties to their clients.
• B. One licensee represents both parties.
• C. Marketing communications reflect combined representation.
• D. No fiduciary responsibility.

Answer: (A)

Designated agency means two licensees within the same brokerage each represent a different client in the same transaction, and each owes fiduciary duties to their own client. That arrangement keeps loyalty, confidentiality, disclosure, obedience, accounting, and reasonable care dedicated to the individual client, even though the agents work under the same brokerage. By design, the buyers’ agent advocates for the buyer and the sellers’ agent advocates for the seller, and confidential information from one client isn’t shared with the other. Marketing materials should reflect that there are two separate representations, not imply that one agent represents both sides. The alternative of one licensee representing both parties would create dual agency and potential conflicts of interest, while claiming there’s no fiduciary responsibility contradicts how agency duties are structured.