Final answer:
When a broker initially working as a single-party broker for both sides in a deal transitions to a dual agency or transaction brokerage, informed consent from both parties is necessary to ensure ethical and legal compliance.
Step-by-step explanation:
When a broker has previously entered a relationship as a single-party broker with both parties in a transaction, an important change must occur to continue within legal and ethical boundaries. This transition involves moving from a single agency to a dual agency or transaction brokerage, where the broker represents both parties in a neutral capacity. The broker must obtain informed consent from both parties for this change. This action is crucial to prevent conflicts of interest and to ensure that both parties' interests are adequately protected.
Comparing this to other relationships, much like the breakage and formation of bonds, entering into or altering a relationship requires mutual agreement and can be favorable, akin to the mutual benefits of a marriage, rather than the harm that could arise in a one-sided relationship.
However, it is imperative that this shift does not lead to actions akin to a monopoly, where collaborative market division or price setting occurs, as this is illegal in many jurisdictions, including the European Union and the United States.