To avoid the conflict of dual agency, some state laws allow designated agency, where a broker within a single real estate office representing both the buyer and seller can designate or appoint one salesperson as the "buyer's agent" and another as the "seller's agent" in a transaction. The role of the broker will vary in these instances, depending on the state statutes, from being totally removed from the transaction to being a dual agent, as both sales people are in one office  These laws are quite a departure from traditional common law.

This means simply when there is a listing in the brokerage of which an agent is working and those sellers are represented by another agent in that same brokerage than this is called designated agency.  Once again there must be full written disclosure in the state of Virginia. The principal broker acts as a dual agent in this case in Virginia.  In designated agency both agents are able to provide full representation to their respective clients.  It is a win win situation.

It is my opinion that many times designated agency can eliminate any liability or confusion of dual agency in which one agent represents both parties of a transaction. 

It is the clients right to not agree to dual agency and to get full representation with designated agency in the state of Virginia.