What term describes a situation where one broker represents both the purchaser and the seller?

The term that describes a situation where one broker represents both the purchaser and the seller is dual agency. In a dual agency scenario, the broker has a fiduciary duty to both parties involved in the transaction, which means they must work to balance the interests of both the buyer and the seller while considering their respective needs and preferences.

This arrangement can be beneficial as it allows for streamlined communication and negotiation through a single broker. However, it also requires full disclosure to both parties and consent, as potential conflicts of interest can arise when one party's interests may contradict those of the other party. Understanding dual agency is crucial for real estate professionals because they must navigate the ethical and legal considerations involved in representing both sides in a transaction.

The other terms listed do not apply to the situation where one broker handles both sides. Special agency refers to a relationship in which an agent is appointed to act on behalf of a principal for a specific purpose, while general agency involves a broader scope of authority over multiple activities. Sub-agency involves a situation where an agent works under another agent (the primary agent), which does not fit the description of a single broker representing both the buyer and seller.