Final answer:
In a real estate transaction, the agency relationship can change if the buyer's agent becomes a dual agent or if the agency relationship is terminated. In both scenarios, the parties involved must be informed and act in their best interests.
Step-by-step explanation:
In a real estate transaction, the agency relationship refers to the legal relationship between the real estate agent and the party they represent, such as the buyer or the seller.
This relationship is based on an agreement, usually in the form of a contract. However, there may be instances where the agency relationship changes during the transaction.
One possible scenario is when the buyer's agent becomes a dual agent, representing both the buyer and the seller.
This can happen if the buyer decides to make an offer on a property listed by their own agent. In this situation, the agent must disclose the change in agency relationship to both parties and act in their best interests.
Another scenario is when the agency relationship is terminated. This can occur if the buyer or seller decides to end the agreement with their agent before the transaction is completed.
In such cases, the agent is no longer authorized to act on behalf of that party and the party may seek representation from a different agent.