Oregon Real Estate Practice Test 2025 – Complete Exam Prep

The correct choice is transactional agency, which allows a broker to act as a neutral facilitator in a real estate transaction without representing either party exclusively. In this arrangement, the broker provides services to both the buyer and the seller while keeping impartiality and neutrality at the forefront. This is particularly important in real estate transactions where the interests of both parties may conflict; transactional agency ensures that the broker is not favoring one client over the other, thereby maintaining ethical standards and avoiding potential conflicts of interest.

This arrangement is beneficial in situations where both parties seek to complete a transaction efficiently, as it encourages open communication and collaboration while the broker helps to navigate the complexities of the deal without taking sides.

The other options do not allow for the same level of impartial representation. For instance, exclusive agency implies that the broker has a specific loyalty to a single client, which could result in conflicts when representing multiple clients. Designated agency also involves one broker representing only one party in a transaction, thus creating a potential conflict when the same firm represents both sides. Buyer agency is strictly focused on representing the interests of the buyer, which again does not permit the broker to simultaneously represent multiple clients effectively. Therefore, transactional agency stands out as the option that enables representation of multiple clients without conflict