What is a 'single agency' relationship, and how should conflicts be managed if both buyer and seller interests arise?

What is a 'single agency' relationship, and how should conflicts be managed if both buyer and seller interests arise?

• A. Single agency means representing one client in a transaction; if a potential conflict arises, disclose in writing and seek informed consent; avoid dual agency; if necessary, withdraw from representing one party.
• B. Single agency means representing both the buyer and seller with equal duties.
• C. Single agency means representing one client, but conflicts are resolved by the broker.
• D. Single agency means representing the seller only; conflicts resolved by the seller's instructions.

Answer: (A)

Single agency means the broker represents one client in a transaction, not both the buyer and the seller. This ensures the broker’s duties of loyalty, confidentiality, and full fiduciary support sit with that one client. When a potential conflict arises between the buyer’s and the seller’s interests, the broker must disclose the conflict in writing and obtain the client’s informed consent before continuing. If the conflict cannot be managed while representing that client, the broker should withdraw from representing one party to protect the client's interests and maintain confidentiality. The emphasis is on keeping loyalty to one client and avoiding situations where the broker would owe conflicting duties to both sides, which could compromise either party. Representing both sides is dual agency, which is not the approach described here. Simply having the broker resolve the conflict without client consent does not adequately protect the client’s rights, and limiting representation to the seller while ignoring the need for consent and possible withdrawal does not reflect how single agency and conflict management work in practice.

Single agency means the broker represents one client in a transaction, not both the buyer and the seller. This ensures the broker’s duties of loyalty, confidentiality, and full fiduciary support sit with that one client. When a potential conflict arises between the buyer’s and the seller’s interests, the broker must disclose the conflict in writing and obtain the client’s informed consent before continuing. If the conflict cannot be managed while representing that client, the broker should withdraw from representing one party to protect the client's interests and maintain confidentiality. The emphasis is on keeping loyalty to one client and avoiding situations where the broker would owe conflicting duties to both sides, which could compromise either party.

Representing both sides is dual agency, which is not the approach described here. Simply having the broker resolve the conflict without client consent does not adequately protect the client’s rights, and limiting representation to the seller while ignoring the need for consent and possible withdrawal does not reflect how single agency and conflict management work in practice.