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Designated Agency

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Definition:

"Designated agent" means a licensee affiliated with a broker who has been designated by the broker, or the broker's duly authorized representative, to act as the agent of a broker's buyer or seller client to the exclusion of all other affiliated licensees.

The agency agreement with the client

A designated agent is appointed in the written agency agreement with the client [58-30,109(b)(1)].

If a brokerage firm practices designated agency, the Commission recommends that the broker review paragraph 7 of the KREC sample contract forms dated November 5, 1997 (see BRRETA II forms).

An agency agreement with a SELLER must include any potential for the BUYER to be represented by a designated agent. The agency agreement therefore addresses two different possibilities: (A) if a designated agent is not appointed to represent the seller, and (B) if a designated agent is appointed to represent the seller.

An agency agreement with a BUYER must include any potential for the SELLER to be represented by a designated agent. The agency agreement therefore addresses two different possibilities: (A) if a designated agent is not appointed to represent the buyer, and (B) if a designated agent is appointed to represent the buyer.

More than one designated agent for a buyer or seller client

Although the definition of "designated agent" uses the singular [to act as the agent of a broker's buyer or seller client], K.S.A. 58-30,109(b)(1) appears to permit more than one affiliated licensee to be designated as legal agent. If we assume that two or more licensees may be designated, they jointly act as the legal agent.

How does this affect the "same designated agent" issue?

If two licensees are designated to act as legal agent for a buyer client and the buyer wants to see a listing of either licensee, neither licensee could continue the agency relationship to represent the buyer. A Transaction Broker Addendum can be signed by both buyer and seller and the status of the licensees will then change from designated agent to transaction broker.

How would designated agency work in the "team" concept?

All members of the team would be designated, by listing each individual's name, in the agency agreement. Listings of any member of the team would trigger the "same designated agent" issue.

Designated agency not limited to in-house sales

A designated agent for a client is the exclusive agent of the client for any transaction, including FSBO's and cooperative sales with other firms. The supervising broker of a designated agent always acts as a transaction broker in any transaction involving the designated agent.


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