Which term describes a relationship where the agent represents only one party in a transaction and owes fiduciary duties to that party?

• A. Agency coupled with interest
• B. Designated agent
• C. Seller as principal
• D. Single agency

Answer: (D)

Single agency is the term for a relationship where the agent represents only one party in a transaction and owes fiduciary duties to that party. When an agent operates under single agency, their loyalty, confidentiality, and duty to disclose material information are all dedicated to the client they represent. This structure prevents conflicts of interest that could arise if the same agent tried to advocate for both sides or balance competing interests.

Agency coupled with interest describes a situation where the agent has a personal stake in the deal, which can complicate the duties owed to the client and is not defined by representing just one party. A designated agent refers to the broker designating a specific agent to represent a party (often within the same brokerage) and can still be part of a broader representation setup, but the defining feature here is the exclusive representation and fiduciary duties to a single client. Seller as principal indicates who is being represented rather than the nature of the agent’s duties, so it doesn’t capture the concept of exclusive representation.