In dual agency, conflicts of interest may arise since a single broker has both the listing contract with the seller and a buyer agency agreement with the purchaser. One way that states have attempted to deal with this issue is to develop a new type of brokerage relationship in which the broker assists the buyer and seller, but does not represent either party. This type of brokerage relationship is commonly referred to as:
A) unintended dual agency
B) universal agency
C) transaction brokerage
D) multiple listing

Question

Quizplus · Accepted Answer

The type of brokerage relationship wherein the broker assists the buyer and seller but does not represent either party is called transaction brokerage. This type of brokerage relationship is a way for states to address the potential conflicts of interest and ethical concerns that arise with dual agency. Transaction brokers are neutral parties and do not owe a fiduciary duty to either the buyer or the seller. They provide assistance with the transaction but do not advocate for one party over the other.

In Dual Agency, Conflicts of Interest May Arise Since a Single