An advantage of a designated agency agreement is that:

While it is true that one agent can represent both parties in a transaction, this arrangement is not specific to designated agency agreements. In traditional agency settings, dual agency can create conflicts of interest and does not guarantee individual representation for both parties. Designated agency specifically addresses this by assigning separate agents within the same firm.

This statement is misleading, as designated agency agreements typically involve fees associated with the services provided by the agents. While the agreement itself may not have a direct cost, the representation and transaction services usually incur charges, which can vary by brokerage.

In a designated agency agreement, the listing agent represents the seller and cannot simultaneously act as the buyer's agent. This separation is crucial to avoid conflicts of interest and ensure that both the seller and buyer receive impartial representation from different agents within the same firm.