What is the term for when a single broker represents both parties in a real estate transaction?

The term for when a single broker represents both parties in a real estate transaction is dual agency. In this arrangement, the broker has a responsibility to manage the interests of both the buyer and the seller within the same transaction. This dual representation requires the broker to maintain transparency and fairness, ensuring that both parties are treated equitably throughout the process.

This can often lead to a unique set of challenges, as the broker must navigate the potential conflicts of interest that arise when trying to satisfy the needs and goals of both parties. Typically, dual agency must be disclosed and agreed upon by both the buyer and seller, as it can significantly impact the dynamics of the negotiation and transaction.

The other terms listed represent different agency relationships: single agency refers to a broker representing only one party in a transaction, transactional agency involves a broker acting as a facilitator without representing either party, and multiple agency implies a scenario where multiple brokers are involved, each representing separate parties in a transaction. Each of these has distinct implications and responsibilities that differ from those of dual agency.