Single Agent Relationship
To understand Broker/Client relationship it is important to first understand the term ‘fiduciary’. When a broker represents the buyer or seller as a fiduciary, they are in a relationship of trust and confidence wherein the broker, as agent, accepts employment as a single agent of the buyer or the seller – but not both. This Single Agency relationship establishes certain duties of an agent that are not required under a Transaction Broker Relationship: Full Loyalty, Confidentiality, Obedience, and Disclosure.
Real Estate Agents are licensed professionals who work on behalf of their Broker. In other words, you may choose a Real Estate Agent to represent you, but the Broker has the established fiduciary relationship with you. Therefore, Agents from within the same office cannot represent a buyer and a seller within the same transaction because, technically, the Broker would then represent both parties – this is prohibited.
Solving the Conundrum
When a situation arises where both a buyer and a seller are represented by real estate agents from within the same brokerage on the same transaction, a Transition to Transaction Broker is established.