Can a sales associate in the same brokerage act as a transaction broker while another in the firm acts as a single agent for the seller?

In the context of real estate transactions, the roles of agents can significantly impact how a transaction is conducted. A sales associate acting as a transaction broker provides a limited form of representation that does not advocate for one party over the other. On the other hand, a sales associate acting as a single agent for the seller has a fiduciary duty to that seller, which includes advocating for their interests.

When one associate acts as a transaction broker while another acts as a single agent for the seller, there is a potential for conflicting interests, as the transaction broker is neutral while the single agent is positioned to favor the seller. This dual representation can lead to confusion regarding whose interests are being prioritized and may compromise the duties owed to each party involved in the transaction.

While it is essential for all parties to understand their representation, allowing both roles to coexist under the same brokerage can introduce complexities that may not be adequately navigated without clear communication and disclosure. Therefore, to maintain the integrity of the representation and to avoid misrepresentation or conflict, this situation is generally considered to create conflicts, leading to the conclusion that it is not permissible for a sales associate to operate in both capacities simultaneously.