Designated Agency & Conflict of Interest Flashcards

Flashcards about Designated Agency & Conflict of Interest

Can brokers give designated agents confidential advice?

No. Brokers must remain neutral in designated agency and cannot provide confidential advice. They may instead refer to standard questions or due diligence checklists.

Who decides whether a brokerage practices designated agency?

The broker decides and must report their decision to RECA.

What must a broker do if they choose designated agency?

Designate agency responsibilities to individual licensees, establish information barriers, and ensure use of standard designated agency agreements.

What are the broker's responsibilities regarding licensee education?

They must educate licensees on designated agency, enforce brokerage policies, and ensure licensees sign written designated agency agreements.

What are the minimum brokerage requirements for practicing designated agency?

Information barriers, staff training, oversight systems, and signed designated agency agreements.

When might designated agency be inappropriate?

If the brokerage is too small, has limited private space, cannot isolate staff, or the broker actively trades in real estate.

What are examples of practices that support information barriers?

Private discussions, strong passwords, secure devices, not discussing clients socially or in meetings, and secure home offices.

What must designated agency service agreements include?

Appointment of a designated agent, that agency responsibilities rest with the agent, and no sub-agency without consent.