What type of agency allows real estate agents to represent both the buyer and seller?

The correct answer is transaction brokerage. This type of agency relationship allows real estate agents to act as neutral intermediaries for both the buyer and the seller in a transaction. The transaction broker facilitates the transaction without advocating for either party, maintaining a more neutral stance while helping both parties navigate the buying and selling process. This approach can help streamline communication and efficiency, as the agent does not take sides but rather assists in bringing the parties together to reach an agreement.

In contrast, other agency types, such as exclusive agency, designated agency, or multiple agency, involve different levels of representation or loyalty to one party over the other. Exclusive agency tends to focus on one principle, typically the seller, while designated agency assigns a specific agent to represent either the buyer or the seller to ensure dedicated representation. Multiple agency suggests a broader representation, but it can often lead to conflicts of interest if not properly disclosed and managed.