Wisconsin Real Estate Sales Practice Exam

What term refers to a broker representing both the buyer and seller?

1. Exclusive agency

2. Dual agency

3. Single agency

4. Limited agency

The correct answer is: Dual agency

The term that refers to a broker representing both the buyer and the seller is dual agency. In this arrangement, a single real estate broker acts on behalf of both parties in a transaction. This can occur in situations where the broker has clients interested in buying a property while also having a listing agreement with that same property’s seller. Dual agency is significant in real estate as it can streamline the transaction process, providing both parties with a common point of contact and potentially saving time. However, it requires full disclosure and consent from both the buyer and seller, as there may be inherent conflicts of interest. The broker must navigate the interests of both clients carefully, ensuring that each party's rights are respected. In the context of other options, exclusive agency refers to a situation where a seller retains the rights to sell their property but allows one broker to act as their representative. Single agency would involve a broker representing only one party in the transaction, while limited agency entails a scenario where the broker provides services but does not represent either party fully, often resulting in reduced fiduciary responsibilities. Therefore, understanding the implications and responsibilities of dual agency is crucial for real estate professionals navigating such situations.