Which of the following best defines a transaction broker?

A transaction broker is best defined as an agent who provides limited representation to both the buyer and the seller in a real estate transaction. This means that the transaction broker does not owe full fiduciary duties to either party but facilitates the transaction by assisting both sides in a neutral manner. The role of a transaction broker is to help both parties understand the process, negotiate terms, and complete the transaction efficiently without advocating for one side or the other.

This role is significant in real estate because it allows for a more collaborative approach in transactions, which can be beneficial in situations where the buyer and seller may be looking for a straightforward exchange without the complexities of dual agency. The transaction broker may provide help with paperwork and offer general guidance but does not represent the interests of one party over the other, ensuring both parties are relatively informed throughout the process.

In contrast, agents who represent only the seller or only the buyer are acting in a fiduciary capacity and have a loyalty obligation to their respective clients. Furthermore, the statement about disclosing confidential information does not accurately encompass the role of a transaction broker, as they do not possess or need to disclose confidential information in the same way an agent with fiduciary duties would.