Which term describes a broker acting on behalf of a seller while also representing a buyer?

The term that describes a broker acting on behalf of a seller while also representing a buyer is dual agency. In dual agency, a broker represents both parties in a real estate transaction. This situation can occur when a broker has a listing agreement with the seller and simultaneously enters into a buyer's agency agreement with a buyer who is interested in purchasing that same property.

Dual agency is significant because it creates potential conflicts of interest; therefore, many states require that both parties give informed consent to the arrangement. This means both the seller and the buyer must be aware that the broker represents both sides and agree to this representation, ensuring that both parties understand the broker's role and limitations in terms of confidentiality and fiduciary duties.

This contrasts with single agency, where the broker represents only one party in the transaction, or subagency, where a broker acts as an agent for another agent, usually in a cooperative relationship. Special agency pertains to a broker's agency limited to specific tasks, such as a listing agreement for a seller, rather than representing multiple parties.