What type of agency exists when a broker represents both the buyer and the seller in a transaction?

In a situation where a broker represents both the buyer and the seller in a real estate transaction, dual agency is the correct term. This arrangement allows a broker to facilitate the transaction while maintaining a duty of loyalty to both parties, although it can create potential conflicts of interest.

In dual agency, the broker must navigate the interests of both the buyer and the seller, providing information and support to facilitate a successful transaction while balancing their obligations to each party. Laws in many states, including Wyoming, require brokers to disclose their dual agency status and obtain consent from both buyers and sellers to ensure transparency and protect the interests of all involved.

Other types of agency, such as single agency, designated agency, and transactional agency, have distinct definitions that do not apply to this specific situation. Single agency involves a broker representing only one party—either the buyer or the seller—while designated agency allows a broker to assign specific agents within the brokerage to represent the buyer or the seller separately. Transactional agency, on the other hand, refers to a role where the broker acts as a facilitator in the transaction without representing either party, focusing solely on the completion of the transaction rather than advocating for one side over the other.