Wisconsin Real Estate Sales Practice Exam

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What type of agency is practiced when a firm represents only one side of a transaction?

Dual agency
Single agency
Designated agency
Transactional agency

The correct answer is: Single agency

Single agency is defined as a relationship in which a real estate firm or agent represents only one party in a transaction, either the buyer or the seller. This type of agency ensures that the agent's loyalty and fiduciary duties are directed solely toward one client, allowing them to fully advocate for that client's best interests throughout the buying or selling process. In contrast, dual agency involves representing both the buyer and the seller within the same transaction, which can create conflicts of interest and often requires informed consent from both parties. Designated agency is a specific type of single agency where different agents within the same firm represent the buyer and seller separately, while transactional agency refers to a situation where the agent does not represent either party in a fiduciary capacity but rather facilitates the transaction without advocating for either side.