In a transaction brokerage relationship, which duty is essential?

In a transaction brokerage relationship, keeping all parties informed during negotiations is essential because the primary role of a transaction broker is to facilitate the transaction without advocating for one party over the other. This means ensuring that both the buyer and seller are aware of what is happening throughout the negotiation process. By maintaining clear communication, the broker helps foster transparency and trust, which are crucial for a successful transaction.

The duty to keep all parties informed is integral to the process, as it enables both sides to make informed decisions based on the latest developments. This aligns with the broker's responsibility to act fairly and impartially, ensuring that neither party is at a disadvantage due to a lack of information.

While other duties, such as confidentiality of exclusive terms and the disclosure of motivations, may be important in different contexts, they are not central to the functioning of a transaction brokerage. The representation of both buyer and seller also does not apply here, as transaction brokers do not provide full representation in the same way that an agent would in a traditional agency relationship. Instead, their focus is on managing the transaction effectively while aiding both parties equally.