What type of agency relationship allows both the buyer and seller to be represented by the same broker?

In the context of real estate, the type of agency relationship that allows both the buyer and seller to be represented by the same broker is dual agency. This arrangement is significant because it enables the broker to facilitate the transaction between both parties, acting as a neutral intermediary.

In a dual agency situation, the broker must maintain impartiality and cannot favor one party over the other. This relationship is permissible in many states, including Michigan, but it typically requires full disclosure and informed consent from both the buyer and the seller due to potential conflicts of interest. This setup can streamline communication and simplify negotiations, as both parties are working with the same representative.

Other agency relationships, such as exclusive agency, transactional agency, and designated agency, do not involve this dual representation; instead, they either focus on single-party representation or designate specific agents to represent one side in a transaction. Therefore, dual agency is uniquely characterized by its inclusion of both the buyer and seller under one broker.