Final answer:
A broker acting as an intermediary typically represents both the buyer and seller, facilitating the transaction between them. This is common in real estate and financial market transactions, where intermediaries like banks connect savers and borrowers. The specific party a broker represents can vary based on agreements and the type of brokerage relationship established.
Step-by-step explanation:
A broker who acts as an intermediary typically represents both parties in a transaction. An intermediary is defined as someone who acts as a go-between for two other parties, facilitating a connection or transaction between them. In the context of real estate, this broker seeks to bring together a buyer and seller and typically has fiduciary responsibilities to both, unless the broker has an exclusive agreement with one party. In financial markets, banks are a common form of financial intermediary, connecting savers and borrowers without the two ever meeting directly.
However, it's important to note that the specific obligations and representations can vary based on the context and the terms of the agreement established between the broker and the parties involved. For example, in case of a dual agent, they have to balance both sides' interests. In case of asymmetric information, either the buyer, the seller, or both may not have perfect knowledge, which can affect the transaction dynamics.