Question 65

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 operate in dual roles, representing either the buyer or the seller, as long as 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, provided there is a written agency agreement, which this option fails to acknowledge.

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

This statement is also incorrect. Similar to Option A, it incorrectly restricts the role of a designated agency to representing only sellers, ignoring its capability to represent buyers as well when a written agreement is established.

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

This statement is correct. A designated agency indeed has the authority to represent either party—buyer or seller—given that there is a written agency agreement, thus capturing the full scope of its functionality.

D) It does not require a written agency agreement.

This statement is incorrect. A designated agency must have a written agency agreement to validate its representation of either buyers or sellers, which this option contradicts by suggesting otherwise.

Conclusion

The correct answer, C, clearly outlines the dual capacity of a designated agency to represent both buyers and sellers, contingent upon a written agreement. All other options either limit the agency's role incorrectly or misinterpret the necessity of a written agreement, failing to capture the essential characteristics of a designated agency.