What is the term for a scenario where a principal broker and an appointed licensee represent a client, but no other licensees from the firm do?

The correct term for a scenario where a principal broker and an appointed licensee represent a client, with no other licensees from the firm involved, is designated agency. In Kentucky real estate practice, designated agency allows specific licensees within a brokerage to represent the best interests of a client while keeping the other agents within the same firm from participating in the representation. This setup helps to avoid conflicts of interest and ensures that the client receives focused representation by designated individuals who are fully informed about the client’s needs and goals.

In contrast, shared agency refers to a situation involving multiple agents from the same firm representing a client, which can create confusion over who is responsible for what. Dual agency, on the other hand, happens when one agent represents both the buyer and seller in the same transaction, which is permissible under certain conditions but differs from designated agency. Exclusive agency typically refers to a listing or agreement where one agent has the right to sell a property without competition, but does not pertain to the representation structure within a brokerage context. Therefore, the concept of designated agency specifically addresses the framework of representation that is being described in the question.