What is the relationship called when a broker represents both parties in a transaction?

The relationship in which a broker represents both parties in a transaction is known as dual agency. This occurs when a single broker or agent facilitates a real estate transaction for both the seller and the buyer, which can bring about unique challenges and considerations. In dual agency, the broker must maintain neutrality and cannot favor one party over the other, since they owe fiduciary duties to both. This arrangement allows for streamlined communication and negotiation, but it also requires full disclosure and informed consent from both parties to avoid conflicts of interest.

In contrast, exclusive agency refers to a type of listing agreement where the seller grants a broker the right to sell the property while retaining the ability to sell it themselves without paying the broker a commission. General agency pertains to a broader relationship where an agent has the authority to represent a client in multiple dealings, not limited solely to real estate transactions. Buyer agency specifically outlines a relationship where the broker solely represents the interests of the buyer in a real estate transaction. Understanding these distinctions is crucial when navigating the complexities of real estate relationships.