The agency type most commonly created by a listing agreement is which?

• A. General agency
• B. Dual agency
• C. Special agency
• D. Universal agency

Answer: (B)

Listing agreements create a representation relationship between the seller and the broker for a specific transaction. This is a form of special agency, since the broker is authorized to act on behalf of the seller only for that sale. In many real estate deals, the same brokerage also represents the buyer, so the broker ends up representing both parties in the same transaction. When that happens, you have dual agency. Because this overlap—representing both sides in the same deal—is common in practice, dual agency is the most typical result of a listing agreement. Remember that dual agency requires full disclosure and consent, and some jurisdictions place restrictions on it; if the buyer is represented by a separate agent outside the listing firm's brokerage, the arrangement would be single agency for the seller.