Which agency relationship cannot be offered by a sole proprietor firm without associated licensees?

In the context of real estate agency relationships, multiple representation with designated agency involves having one firm represent both the buyer and seller in a transaction, while designating specific licensees to oversee each client. This relationship allows the firm to maintain a level of independence and provide tailored services to each party despite being under the same brokerage umbrella.

A sole proprietor firm typically cannot offer this type of representation without associated licensees because the designated agency requires multiple licensed individuals to effectively represent both parties. The designated licensees must act in the best interests of their respective clients, which cannot be accomplished by a sole proprietor acting alone, as there would be a conflict of interest and a lack of adequate representation for both sides.

Single representation can be offered by a sole proprietor, as it involves representing only one party in a transaction. Similarly, transaction brokerage and sub-agency can be executed without the necessity of having additional licensees. However, the structure of multiple representation with designated agency specifically necessitates the involvement of multiple licensees to appropriately manage and fulfill their fiduciary duties to both clients.