What is a primary factor associated with intermediary brokerage?

Prepare for the Law of Agency Test. Delve into multiple choice questions featuring hints and explanations. Sharpen your understanding of agency law and gear up for success!

Intermediary brokerage involves an agent acting on behalf of both the buyer and the seller within a single brokerage or firm, facilitating their negotiation in a manner that seeks to create a mutually beneficial outcome. The primary factor associated with this practice is the ability to manage the negotiation process and communications between both parties effectively, which is exactly what option B highlights.

In intermediary brokerage, the agent plays a unique role where they can help both clients find common ground and reach an agreement while still honoring their respective interests. This dual representation is designed to streamline the process and promote efficiency in negotiations since both parties are working through the same agent, who is ideally positioned to maintain a balanced perspective.

In contrast, providing exclusive representation for one client means the agent is only focused on one party's interests, which is not what intermediary brokerage is about. Ensuring agents do not communicate contradicts the nature of intermediary brokerage, where communication is necessary to facilitate negotiations. Limiting client disclosure to one party would diminish the transparency and fairness expected in an intermediary relationship, as both clients need to be fairly informed during negotiations. Thus, the correct choice encapsulates the essence of intermediary brokerage as it pertains to negotiation within a single brokerage setting.

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