Question 65

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

A designated agency allows the representation of either the buyer or the seller, contingent upon having 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, provided the appropriate written agency agreement is established.

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

This statement is also incorrect. Similar to option A, a designated agency is not restricted solely to sellers and can represent buyers as well, contingent on having a written agreement.

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

This statement is correct. A designated agency can indeed represent either a buyer or a seller, but this representation must be formalized through a written agency agreement, allowing for clarity and legal standing.

D) It does not require a written agency agreement.

This statement is incorrect. A designated agency requires a written agency agreement to establish the terms of representation, ensuring that both parties are clear about their rights and responsibilities.

Conclusion

The correct answer is option C, as it accurately reflects the nature of a designated agency, which can represent both buyers and sellers with the requisite written agreement. Options A, B, and D fail to recognize the dual capacity of designated agencies and the necessity of formal agreements, thereby making them incorrect.