Which term describes a person authorized by the broker to act as the agent of a specific principal based on fiduciary relationship?

• A. Designated agent
• B. Single agency
• C. Agency coupled with interest
• D. Seller as principal

Answer: (A)

The main idea here is designated agency: a broker appoints a specific agent to represent a particular principal, and that agent has fiduciary duties to that principal. This person acts on behalf of one identified client within a brokerage, with loyalty, confidentiality, and full disclosure owed to that client. This setup allows a broker to handle multiple principals at once—each with their own designated agent—without mixing loyalties or compromising the principal’s interests.

This term fits best because it directly describes someone authorized by the broker to act as the agent for a specific principal based on a fiduciary relationship. The other concepts describe different arrangements: single agency means the broker represents one party in a transaction, not a designation about a specific principal within a brokerage; agency coupled with an interest involves the agent having a personal financial stake in the deal, altering the relationship; and seller as principal simply identifies who is on the other side of the transaction, not the mechanism by which an agent is appointed.