In Designated Agency, how is the relationship structured?

Study for the RECA Fundamentals Exam. Access flashcards and multiple choice questions with hints and explanations to prepare for your exam. Enhance your knowledge and readiness for success!

In Designated Agency, the relationship is structured specifically between the individual agent and the client. This model allows the agent to represent the client while still being part of a brokerage, distinguishing the agent’s responsibilities and obligations to the client from those of other agents within the same brokerage.

This structure is beneficial because it allows clients to receive personalized attention and dedicated representation from an individual agent, who acts in their best interest. The brokerage may have other agents representing different clients, but in the case of Designated Agency, the individual agent has a fiduciary duty to their specific client, ensuring confidentiality and loyalty. This focus on the individual agent-client relationship is what sets Designated Agency apart from other agency models, where the brokerage or a team might play a more central role in managing client relationships.

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