What distinguishes a transaction broker from a dual agent?

A transaction broker is distinct from a dual agent primarily in terms of their role and obligations to the parties involved in a real estate transaction. A transaction broker functions as a neutral facilitator and does not represent either party in a traditional agency capacity. This means that a transaction broker cannot disclose confidential information provided by one party to the other without consent, maintaining a level of neutrality and confidentiality that is essential in their role.

In contrast, a dual agent represents both the buyer and the seller in the same transaction, which creates a conflict of interest and requires careful handling of confidential information. The dual agent must navigate their responsibilities without favoring either party, but the core difference lies in the fact that a transaction broker has less obligation to the principles compared to a dual agent, which is where confidentiality becomes particularly crucial.

Thus, the correct answer highlights the transaction broker's limitation regarding disclosure, emphasizing their position as a facilitator rather than a representative, which encapsulates the essence of the transactional support role they perform without representing either party's interests.