What type of agency relationship is created when a broker represents only one party in a transaction?

When a broker represents only one party in a transaction, this establishes a single agency relationship. In this arrangement, the broker is accountable to their client and must act in that client's best interests throughout the transaction. A single agency relationship allows the broker to provide personalized guidance, advice, and representation specifically tailored to the unique needs and goals of that one party, whether it be the buyer or the seller.

A crucial aspect of single agency is the fiduciary duty the broker owes to their client, which includes loyalty, confidentiality, and full disclosure. This relationship contrasts with other types of agency relationships, such as dual agency, where a broker represents both the buyer and the seller, leading to potential conflicts of interest. Transaction brokers, on the other hand, are neutral facilitators and do not represent either party, while limited agency refers to specific contractual limitations placed on the broker's responsibilities to the client. Thus, single agency distinctly highlights the focused representation of one party in the transaction.