What type of agency model involves the brokerage firm having only one client in the transaction?

The concept of Single Agency is pivotal in the real estate industry, where it refers to a situation in which a brokerage firm represents only one party in a transaction—either the buyer or the seller, but not both. This model creates a clear, consistent relationship where the agent's fiduciary duties are solely directed toward the interests of their client.

In Single Agency, the agent has an obligation to advocate for their client’s best interests, keeping their confidences and working solely to achieve the client’s goals. This clarity in representation helps establish trust and transparency between the agent and the client. The absence of conflicting loyalties allows for more straightforward communication and decision-making.

Other agency models, such as Dual Agency, involve the agent representing both parties in a transaction, which can lead to conflicts of interest. Designated Agency refers to a scenario where an agent within the same brokerage represents a client, establishing a more focused representation but still existing within a dual agency context. Transactional Agency, on the other hand, does not provide representation to either party but merely facilitates the transaction, which is distinct from the focused commitment seen in Single Agency.

Thus, the essence of Single Agency lies in its undivided representation, ensuring that one client's interests are prioritized without competing