Which agency relationship might involve one agent representing two different clients in the same transaction?

The correct response to the question is dual agency. In a dual agency relationship, one real estate agent represents both the buyer and the seller in the same transaction. This scenario typically requires full disclosure to both parties, as it can create conflicts of interest. The agent must be careful to remain neutral, representing the interests of both parties without favoring one over the other.

Dual agency is common in situations where a buyer who is also interested in a property listed by the same agent decides to work with that agent for both buying and selling. The key aspect of dual agency is the necessity for transparency, as both parties must consent to the dual representation after being informed of the implications.

Other agency relationships, such as exclusive agency or multi-agency, do not facilitate this type of dual representation. An exclusive agency typically involves one agent exclusively representing one client, whereas multi-agency would imply that different agents are representing different clients in the same transaction, but not a single agent serving both roles. Co-agency often refers to a situation where multiple agents work together but still represent different parties.