Which of the following statements most accurately describes designated agency?

Designated agency is characterized by the arrangement where each agent is responsible for representing their respective client exclusively. This means that in a designated agency setup, one agent will represent the seller's interests while another agent represents the buyer's interests, but both agents operate within the same brokerage.

This structure helps to avoid potential conflicts of interest while ensuring that each client receives dedicated representation tailored to their specific needs. The allocated agents do not share their fiduciary duties with one another, which allows them to focus solely on advocating for their clients during negotiations and throughout the transaction process.

This model contrasts sharply with situations where agents might have equal authority over both clients or where clients share representation. Designated agency provides clarity and a high degree of loyalty to each party involved in the transaction, enhancing the professionalism and integrity of client-agent relationships within a brokerage.