In transaction broker representation, the duty of loyalty is not provided to the buyer. Instead, the transaction broker acts as a neutral intermediary who facilitates the transaction between the buyer and the seller without representing either party fully. This relationship means that the transaction broker does not owe fiduciary duties such as loyalty, which include prioritizing one party’s interests over the other’s.
The absence of a duty of loyalty allows the transaction broker to remain impartial, ensuring that they provide equal service to both the buyer and the seller, focusing on facilitating the transaction rather than advocating for one side. This contrasts with traditional agency relationships, where the agent has a fiduciary duty to act in the best interest of their client, which includes loyalty to that client.
In summary, the nature of transaction brokerage inherently means that the duty of loyalty is not a part of the representation provided, aligning with the explanation that the correct response confirms the lack of such a duty under this type of relationship.