12.17 Designated Relationships

• Library: Real Estate Practice Deskbook (2019 Ed.)

F. (§12.17) Designated Relationships

As previously stated, brokerage service agreements are entered into between the broker and the client. While the affiliated licensee may sign the brokerage service agreement on behalf of the broker pursuant to the broker's written policy, the affiliated licensee's connection to the client is only through the broker. As such, the brokerage relationship established between the broker and client would apply to all licensees affiliated with the broker. Of course, this general rule, especially in brokerages with many affiliated licensees, results in many instances in which the seller/landlord and buyer/tenant are both represented by the broker.

The law contemplates a means by which this situation can be avoided—namely, designated agency or designated transaction brokerage. Section 339.820, RSMo 2016, authorizes a designated...