What type of agency relationship exists when a broker represents both the buyer and the seller in a transaction?

In a situation where a broker represents both the buyer and the seller in a transaction, a dual agency relationship is established. This type of agency allows the broker to advocate for both parties, but it also requires full disclosure and consent from both the buyer and the seller due to potential conflicts of interest. The broker must remain neutral and fair, ensuring that both parties are treated equitably throughout the transaction.

In contrast, single agency refers to a relationship where the broker represents only one party in the transaction, either the buyer or the seller, and has a fiduciary duty to that party. Designated agency involves a situation where a brokerage has both the buyer and seller as clients, but assigns different agents within the same firm to represent each party separately, thus maintaining more focused and individual representation. Transactional agency, on the other hand, does not involve fiduciary duties to either party but rather assists in facilitating the transaction without taking sides.

Therefore, the correct identification of the agency where a broker represents both the buyer and seller is dual agency, with the implications it carries regarding neutrality and consent from both sides.