What type of agency is formed when the seller and buyer are represented by different agents?

In a situation where the seller and buyer are represented by different agents, a designated agency is formed. Designated agency occurs when a broker assigns different agents within the same brokerage to represent the buyer and the seller in a transaction. This allows both parties to receive dedicated representation while still being part of the same brokerage.

The distinct advantage of designated agency is that it helps to reduce any potential conflicts of interest while maintaining a collaborative approach within the brokerage. Each agent can provide their client with personalized attention and advice tailored to their specific needs and interests in the transaction. In Kentucky, this arrangement is particularly significant as it aligns with state regulations about agency relationships and disclosure, ensuring that both parties are informed and properly represented.

The other types of agency, such as exclusive agency, single agency, and general agency, do not describe the scenario where different agents within the same brokerage are representing opposing parties in a real estate transaction. Each of these terms has different implications regarding the representation structure and client relationships, making them unsuitable in this context.