What type of representation agreement involves a broker representing both the seller and the buyer?

The type of representation agreement where a broker represents both the seller and the buyer is referred to as limited representation. This arrangement is a form of dual agency, which permits the broker to act on behalf of both parties in a real estate transaction. In this situation, the broker must maintain a neutral stance and balance the interests of both the buyer and the seller, adhering to the legal and ethical obligations involved.

Limited representation can allow for smoother transactions and increased efficiency, as the broker has insights into both parties' needs and motivations. Additionally, both the seller and buyer must provide informed consent to this arrangement, acknowledging the broker’s role in representing both parties. Understanding this type of agreement is crucial for anyone involved in real estate, as it impacts negotiations and the duties owed to each party.