What term describes a company that works with both sellers and buyers but not in the same transaction?

Prepare for the TREC Law of Agency Exam. Study with multiple-choice questions and detailed explanations. Get confident for your test!

The term that accurately describes a company that engages with both sellers and buyers but does not act in the same transaction is known as a single agency company. In a single agency relationship, the company represents either the seller or the buyer exclusively. This means that while the company may have clients on both sides of a transaction, it maintains separate representation, ensuring that there is no conflict of interest. This strict focus on either the buyer or the seller enhances the representation and advocacy the agent can provide, leading to a clearer, more defined relationship with their client.

The other terms, although relevant within agency law, do not correctly capture the essence of representing clients in separate transactions. Dual agency, for instance, would involve the same company representing both buyer and seller in the same transaction, which raises potential conflicts of interest and thus is not applicable here. Intermediary agency and combined agency also suggest varying degrees of interconnected representation, which does not align with the parameters set by the question. Consequently, referring to the company that handles both roles without a shared transaction correctly identifies it as a single agency company.

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