Iowa Real Estate Practice Exam

If a salesperson acts solely for a seller-client in a real estate transaction to the exclusion of everyone else in his or her brokerage agency, the salesperson is a(n)

1. designated agent

2. appointed agent

3. general agent

4. transactional agent

The correct answer is: appointed agent

In the context of real estate, when a salesperson represents only a seller-client within a brokerage and excludes other parties within that brokerage, the most fitting term for that role is "appointed agent." An appointed agent is specifically designated by the brokerage to represent the interests of one client, providing undivided loyalty to that client. This arrangement allows for a more focused and personal representation since the agent’s obligations lie solely with the seller. In contrast, a designated agent refers to a situation where a brokerage may designate an agent to represent a specific client while other agents within the same brokerage represent other parties. A general agent typically has broader responsibilities, often managing a range of tasks on behalf of the principal but not restricted to a single transaction or client. A transactional agent does not fully represent either party and primarily facilitates the transaction without a fiduciary relationship to either the buyer or the seller. Understanding these distinctions is crucial for recognizing the varying levels of responsibilities and loyalties agents have concerning their clients in real estate transactions.