What type of agency relationship is established when a broker represents a seller?

When a broker represents a seller, the type of agency relationship established is known as seller agency. This relationship occurs when the broker is authorized to act on behalf of the seller in the sale of property. The broker’s primary responsibility is to act in the best interests of the seller, which includes marketing the property, negotiating offers, and ensuring that the seller's needs and goals are prioritized throughout the transaction.

In this scenario, the seller agency relationship signifies a formal agreement where the broker has fiduciary duties, which include loyalty, confidentiality, disclosure, and accounting. This means the broker must place the seller's interests above all else, provide full disclosure about offers, and present any conflicts of interest that may arise.

Other types of agency relationships, such as buyer agency, would involve representing the interests of a buyer in a real estate transaction, while shared agency could imply a situation where multiple agents share responsibilities for the client. Transactional agency usually refers to a relationship where the broker facilitates the sale without representing either party, focusing instead on administrative functions. In this question, since the broker is clearly representing the seller, seller agency is the appropriate answer.