When a principal broker appoints one agent to work for the buyer and one agent to work for the seller, this is called what?

When a principal broker appoints one agent to represent the buyer and another agent to represent the seller, this arrangement is called designated agency. In designated agency, the principal broker allows specific agents within their brokerage to represent opposing parties in the same transaction, thereby avoiding conflicts of interest that can arise in dual agency scenarios. This structure ensures that both the buyer and seller have dedicated, exclusive representation, which can enhance the level of service and advocacy they receive.

In designated agency, the appointed agents work independently within the transaction, focusing on the best interests of their respective clients. This is especially important in real estate transactions where the needs and objectives of buyers and sellers can often be at odds, and maintaining clear, separate representation can lead to a more effective negotiation process.

Designated representation is often viewed as part of the broader concept of designated agency, but it specifically refers to the act of designating agents. The term "dual agency," on the other hand, would indicate that a single agent is working on behalf of both parties, which can lead to conflicts and is subject to different legal standards and disclosures. Split agency is not a standard term used to describe this arrangement in real estate law, making designated agency the correct terminology for situations where both a buyer's agent and