What document must the buyer and seller sign in designated agency?

In designated agency, the essential document that both the buyer and seller must sign is the dual agency/designated agency notice and consent form. This form is crucial because it addresses the potential for dual agency situations, where one agent represents both the buyer and seller. By signing this document, both parties acknowledge that they understand the implications of this setup, including the agent's duty to remain neutral and manage any conflicts of interest that arise.

The consent form acts as a safeguard, ensuring that both parties are informed about how their information will be handled and the nature of the agent's role. It is designed to protect the interests of both the buyer and seller while allowing the agent to facilitate the transaction. In Connecticut, this requirement helps ensure transparency and a clear understanding of the agency relationship, which is fundamental in real estate transactions.

While confidentiality agreements and agency representation contracts are important in real estate practice, they serve different purposes and do not specifically cover the requirements related to designated agency situations. A sales commission agreement relates to the payment to the broker rather than the agency relationship itself.