Confidentiality and Your Brokerage Model

It’s important to understand the implications of the brokerage model you choose to work under as a licensee, and how the model can affect your obligations around client confidentiality.

Your brokerage operates under one of two models: as a brokerage agency or as a designated agency.

Brokerage Agency

In this model, a brokerage enters into a relationship with a client and the entire brokerage is appointed as the client’s agent. All licensees at the brokerage assume the agency obligations of the brokerage relating to that client, including the duty of confidentiality.

The brokerage agency model is required for all strata management and rental property management brokerages. It is also common in small communities and brokerages where it is impractical to keep information confidential from other licensees at the brokerage, such as a single-room office with multiple licensees.

Designated Agency

Under designated agency, the brokerage and its clients agree that one or more licensees at the brokerage will act as the sole agent on behalf of each client. In this agency model, the designated agent is responsible for the primary agency duties of undivided loyalty, obedience, and confidentiality to their client on behalf of the brokerage.

If your brokerage is operating as a designated agency, you must not disclose confidential information about your clients to any other licensee in your brokerage, or any other brokerage, unless they are representing the same client.

Read more about Confidentiality Information and Agency in the Knowledge Base.