Leasing License Practice Exam

What is single agency in real estate?

1. Representing both buyer and seller in a transaction

2. Representing either the buyer or the seller, but not both

3. Working with multiple buyers in a single transaction

4. Acting as a facilitator without representation

The correct answer is: Representing either the buyer or the seller, but not both

Single agency in real estate refers to the practice of representing either the buyer or the seller in a real estate transaction, but not both. This type of agency creates a fiduciary relationship where the agent is obligated to act in the best interests of their client, ensuring confidentiality, loyalty, and full disclosure. When an agent operates under single agency, they focus their efforts on advocating solely for the interests of one party, whether it be the buyer or the seller. This clear delineation helps to avoid potential conflicts of interest that can arise in dual agency scenarios, where the same agent attempts to represent both sides of the transaction. Recognizing the importance of dedicated representation allows clients to feel assured that their needs and objectives are being prioritized without competing interests influencing the relationship. In contrast, options that suggest representing both sides of the transaction, working with multiple buyers for a single property, or acting merely as a facilitator without offering representation are not aligned with the principles of single agency. These concepts would either create a conflict of interest, dilute the agent's responsibility to a single party, or disengage the agent’s role in advocating for their client's interests.