In agency terms, which arrangement describes a licensee representing only the buyer or only the seller?

In agency terms, which arrangement describes a licensee representing only the buyer or only the seller?

• A. Dual agency relationship
• B. Disclosed dual agency
• C. Single agency relationship
• D. No agency relationship

Answer: (C)

The main concept here is the type of agency relationship where a licensee represents only one party in the transaction. When a licensee acts for just one side—either the buyer or the seller—the arrangement is called a single agency relationship. In this setup, the licensee owes fiduciary duties to that one client, including loyalty, confidentiality, full disclosure of relevant facts, obedience to the client’s instructions, and diligent guidance through the process. The other party is treated as a customer, not a client, which helps avoid conflicts of interest that can arise when representing both sides. This differs from a dual agency situation, where the same licensee represents both the buyer and the seller in the same deal, which can create conflicts that must be carefully managed with clear disclosures and consent. Some markets use disclosed dual agency to acknowledge representation of both sides while still obtaining informed consent, but the key point is that the licensee is representing both parties. If there’s no agency relationship, the licensee isn’t representing either party as a client at all. So, the arrangement described—representing only one party in the transaction—is a single agency relationship.

The main concept here is the type of agency relationship where a licensee represents only one party in the transaction. When a licensee acts for just one side—either the buyer or the seller—the arrangement is called a single agency relationship. In this setup, the licensee owes fiduciary duties to that one client, including loyalty, confidentiality, full disclosure of relevant facts, obedience to the client’s instructions, and diligent guidance through the process. The other party is treated as a customer, not a client, which helps avoid conflicts of interest that can arise when representing both sides.

This differs from a dual agency situation, where the same licensee represents both the buyer and the seller in the same deal, which can create conflicts that must be carefully managed with clear disclosures and consent. Some markets use disclosed dual agency to acknowledge representation of both sides while still obtaining informed consent, but the key point is that the licensee is representing both parties. If there’s no agency relationship, the licensee isn’t representing either party as a client at all.

So, the arrangement described—representing only one party in the transaction—is a single agency relationship.