Understanding Designated Agency

Designated Agency became optional on March 1, 2008. To help explain how Designated Agency works, RECA will publish the answers to commonly asked questions and compare answers for both Common Law and Designated Agency in each Regulator.

How are privacy or confidentiality issues different for each model?
Common Law

Alberta privacy legislation (PIPA) and federal privacy legislation (PIPEDA) require the brokerage and all its industry members to keep a clients’ personal information confidential. This is similar to the policies to implement information barriers.

Designated Agency

Alberta privacy legislation (PIPA) and federal privacy legislation (PIPEDA) also apply. In designated agency the brokerage must keep information confidential. However, each designated agent must also keep their clients’ personal information confidential from other industry members registered with the same brokerage.

What happens to my listing if I change brokerages?
Common Law

The listing agreement is with the brokerage and not with the individual industry member.  If the industry member moves to another brokerage, the listing agreement will remain with the current brokerage.  Your seller must agree to any change in brokerage.

Designated Agency-

The listing agreement is with the brokerage and not with the individual industry member.  If the industry member moves to another brokerage, the listing agreement will remain with the current brokerage.  Your seller must agree to any change in brokerage.

If my brokerage becomes a designated agency brokerage can we return to a common law brokerage later?
Yes, a brokerage would have to cancel its designated agency agreements and sign clients to common law agency agreements.

 

 

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