What does it mean if a broker company permits limited agency?

When a broker company permits limited agency, it means that the broker represents both the buyer and the seller in the same transaction, albeit with certain limitations to ensure fairness and impartiality. In this arrangement, the broker acts as an intermediary, helping facilitate the transaction while still maintaining a level of neutrality.

Limited agency often involves disclosing to both parties that the broker represents both sides and clarifying the extent of services provided. This arrangement can be advantageous as it allows for streamlined communication and potential cost savings, but it requires careful adherence to legal obligations and ethical standards to ensure that neither party's interests are compromised.

The other options incorrectly portray the nature of limited agency. For instance, stating that the broker is responsible only for the seller's interests misrepresents the dual role of the broker in limited agency. Similarly, requiring clients to use different agents contradicts the basic premise of limited agency. Lastly, suggesting that the broker is limited to one client at a time is inaccurate, as the essence of limited agency is to manage the interests of multiple clients within the same transaction effectively.