When using designated agency, what must a broker do to ensure compliance?

The focus of designated agency is to ensure that clients receive dedicated representation while maintaining the fiduciary duties of the broker. In a designated agency arrangement, a broker must identify specific agents to represent each client. This helps to eliminate potential conflicts of interest and ensures that each client has an agent who fully understands and advocates for their individual needs within the brokerage.

Identifying designated agents is crucial because it clarifies which specific licensee is responsible for representing which client, allowing for clear communication of interests and obligations. By doing so, the broker helps maintain transparency and trust in the agency relationship, essential elements in real estate transactions.

Other options may involve aspects of compliance, but they do not address the primary requirement of designating agents to fulfill the obligations associated with this type of agency arrangement effectively.