Designated agency, sometimes called appointed agency, is an arrangement used when both the buyer and seller in a transaction are clients of the same brokerage. Instead of one agent trying to represent both sides as a dual agent, the broker designates a different individual agent to represent each party.
This allows each client to receive full representation and advocacy from their own designated agent, even though both agents work for the same firm. The managing broker oversees the arrangement and helps preserve each party's confidential information.
Designated agency is permitted in many states as a way to avoid the neutrality limits of pure dual agency. Rules and availability vary by state, and disclosure to both parties is generally required.