Washington State Real Estate Practice Exam 2025 – All-in-One Guide to Master Your Real Estate License!

The correct answer is dual agency, which occurs when a real estate agent represents both the buyer and the seller within the same transaction. This situation can arise when a broker or agent has a client on both sides of a deal, leading to a unique dynamic.

In a dual agency situation, the agent must navigate their responsibilities and ensure that both parties are fairly represented, maintaining a balance between the interests of the buyer and the seller. It is critical for the agent to disclose their dual agency status, as transparency is necessary to avoid potential conflicts of interest. In many jurisdictions, including Washington State, there are specific regulations governing dual agency to protect both parties involved.

The other terms offered have distinct definitions. Single agency refers to when an agent represents only one party in a transaction, either the buyer or the seller, but not both simultaneously. Exclusive agreements typically pertain to contracts between a broker and their client that grant the broker certain rights for representation, but do not imply multiple representation like dual agency does. Multiple agency would suggest a scenario where one agent represents several clients in separate transactions but does not capture the idea of representing both the buyer and seller in the same transaction.