What type of agency occurs when an agent has a personal interest in a real estate transaction?

The type of agency that occurs when an agent has a personal interest in a real estate transaction is known as "agency coupled with interest." This situation arises when the agent holds a stake or has a vested interest in the property or transaction they are facilitating. Because of this personal interest, the agent's motivations may align closely with those of their principal, potentially influencing their actions and decisions within the transaction.

This form of agency is significant because it often entails that the agent may have certain rights or benefits derived from the transaction itself, distinguishing it from typical agency relationships where the agent acts solely on behalf of the principal without any direct personal financial interest. This characteristic provides added obligation and duty to the agent, as their personal stake can create a heightened responsibility to ensure the transaction's success for both themselves and the principal.

In contrast, the other types of agency presented play different roles. For instance, dual agency refers to a situation where an agent represents both the buyer and the seller in a transaction, which involves complexities of loyalty and disclosure rather than personal interest. Agency with interest could imply an agent has some involvement but lacks the direct personal stake that defines "agency coupled with interest." An exclusive agency involves a scenario where one agent is granted the exclusive right to represent a seller