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Wednesday, June 13, 2012

What Does Designated Agent Mean?

An individual agent in a firm may be designated to represent the interests of seller, while another agent may be appointed to represent the buyer. A realty company may be acting as a dual agent when two of its agent may be helping in buying and selling of the property, which may cause some legal and practical problems. Under the newly designated agency policy and if permitted by both the buyer and seller, the real estate firm may appoint agent "A" as the designated agent for the buyer and agent "B" as the designated agent for the seller.

Each agent would then be exclusively representing the interests of his or her client in the process. Real estate firms are not legally bound to practice designated agency and is usually practiced only by middle-to-large firms. The names of designated agents must be disclosed both to the buyer and seller. By designating agents, the buyer and seller would be receiving fuller and more personal representation. This would help in establishing greater client advocacy, which is often lost in a dual agency situation. As the clients would be receiving greater attention, they may be willing to open up more to the designated agent and get better negotiated offers.

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