Final answer:
A single agency relationship occurs when a broker assists only one party in a transaction, representing their best interests and following a duty of loyalty, confidentiality, and full disclosure. The broker cannot provide advice or assistance to the other party involved in the transaction to avoid conflicts of interest.
Step-by-step explanation:
When a broker assists only one party in a transaction, it is known as a single agency relationship. In this type of relationship, the broker represents and works exclusively for the best interests of one party, typically the buyer or the seller. The broker owes a duty of loyalty, confidentiality, and full disclosure to their client.
For example, if a real estate broker is representing a buyer, they will assist the buyer in finding suitable properties, negotiating the price, and completing the purchase transaction. The broker will act in the buyer's best interests, providing advice and assistance throughout the process.
It's important to note that in a single agency relationship, the broker cannot provide advice or assistance to the other party involved in the transaction. They must remain unbiased and dedicated to serving the interests of their client to avoid any conflicts of interest.