Question 2

A designated agency can be designated as either buyer's or seller's agency with written agency agreement.

A designated agency allows for flexibility in representation and can serve either the buyer or the seller, provided there is a written agency agreement in place.

A) It can only be designated as a buyer's agency with written agency agreement.

This statement is incorrect because a designated agency is not limited to representing only buyers. It can also represent sellers, given that the proper written agency agreement is established.

B) It can only be designated as a seller's agency with written agency agreement.

This option is also incorrect as it mistakenly restricts the function of a designated agency to solely representing sellers. Just like with buyers, designated agencies can represent sellers with the appropriate written agreement.

C) It can be designated as either buyer's or seller's agency with written agency agreement.

This statement accurately reflects the nature of designated agencies. They can represent either party in a real estate transaction as long as there is a formal written agreement in place, allowing for the necessary legal framework.

D) It does not require a written agency agreement.

This statement is false because a designated agency must operate under a written agency agreement to establish the terms of representation and to protect the interests of all parties involved.

Conclusion

The correct answer is C, as it accurately describes the dual capacity of a designated agency to represent both buyers and sellers, contingent on a written agreement. Options A and B incorrectly limit the agency's role, while D misrepresents the requirement for documentation, making C the only valid option.