Under North Carolina law, which statement about designated agency is correct?

In North Carolina, designated agency allows real estate agents within the same brokerage to represent different clients who have conflicting interests in the same transaction. This arrangement ensures that both parties receive fair representation while maintaining confidentiality and loyalty to their respective clients.

The correct statement emphasizes the structure of designated agency, including its critical aspect of avoiding conflicts of interest by enabling agents to serve individually designated clients. This distinction is vital to understanding how designated agency operates within North Carolina's legal framework.

The other options suggest broader or less accurate interpretations of designated agency that do not align with its specific features and principles under state law. This makes the selected statement the most accurate representation of designated agency as it is practiced in North Carolina.