Which type of agency arrangement allows a broker to act for one side in a transaction?

The selected answer pertains to single agency, which is a specific type of agency relationship where a broker represents only one party in a transaction, whether that be the buyer or the seller. In a single agency arrangement, the broker has a fiduciary duty to that particular client, ensuring that their best interests are prioritized throughout the transaction process. This means the broker is solely focused on advocating for their client's needs, ensuring confidentiality, and providing loyalty and full disclosure, which are all key components of fiduciary responsibility.

In contrast, dual agency involves the broker representing both the buyer and seller in the same transaction, leading to potential conflicts of interest since the broker must balance the needs and desires of both parties. Transaction brokerage is different in that it does not advocate for either party but serves as a facilitator, providing neutral assistance without a fiduciary duty. An open listing also does not fit this definition, as it allows multiple brokers to represent a seller and does not ensure a single party representation. Thus, the single agency arrangement clearly distinguishes itself by permitting a broker to act solely on behalf of one side in a transaction.