Which agency relationship is formed when the broker represents only one party and owes fiduciary duties to that party?

• A. General agency
• B. Single agency
• C. Universal agent
• D. Special agency

Answer: (B)

When a broker represents only one party in a real estate transaction, they owe fiduciary duties to that party, prioritizing that party’s interests and keeping information confidential, disclosed, and used to the client’s advantage. This arrangement is called single agency. It ensures loyalty and protection for the client while the broker advocates for them in negotiations and arrangements. If the broker were representing both sides, that would be dual agency, which can create conflicts because the broker has duties to two clients with potentially opposing interests.

The other terms describe how broad the broker’s authority is rather than whom they represent. General agency means broad authority to act for a principal across many matters, not limited to a single transaction. Universal agency implies authority to handle nearly all aspects of the principal’s life, which is far broader than a real estate broker’s typical role. Special agency exists when the broker’s authority is limited to a specific task or transaction; it defines what the broker is allowed to do, but it doesn’t specify that the broker represents only one party in the relationship.