30. Which of the following statements is TRUE about a designated agency?
Answer: C
A designated agency can be designated as either buyer's or seller's agency with written agency agreement.
A designated agency has the flexibility to represent 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 represent sellers as well, depending on the terms of the written agency agreement.
B) It can only be designated as a seller's agency with written agency agreement.
Similar to Option A, this statement is incorrect. A designated agency is not restricted to serving only sellers; it can represent buyers too, contingent on the written agency agreement established.
C) It can be designated as either buyer's or seller's agency with written agency agreement.
This statement is true, as a designated agency is capable of representing either party—buyer or seller—given that a written agency agreement is in place. This flexibility is a key feature of designated agencies.
D) It does not require a written agency agreement.
This statement is incorrect. A designated agency must have a written agency agreement to formalize the relationship and outline the responsibilities and duties of the agent, ensuring clarity for all parties involved.
Conclusion
The correct answer is C, as it accurately reflects the essential function of a designated agency in real estate transactions. Options A, B, and D fail to recognize the dual capability of designated agencies to represent both buyers and sellers under a written agreement, which is crucial for establishing legal agency relationships.