Which type of agency involves representation where the agent has loyalty to only one party?

The concept of single agency entails a representation scenario where the agent is obligated to act with loyalty to only one party, typically either the buyer or the seller in a real estate transaction. This obligation means that the agent must prioritize the interests of their client above those of any other party involved in the transaction. In this arrangement, the agent has a fiduciary duty to the client, including duties of loyalty, full disclosure, and confidentiality.

In cases of dual agency, which involves representation of both the buyer and the seller by the same agent, the agent must navigate potential conflicts of interest, which is fundamentally different from the single agency situation. In-house agency refers to transactions where representatives work within the same brokerage, which does not inherently define the loyalty structure like single agency does. Collaborative agency typically describes a process where multiple agents or brokers work together but does not specifically denote the loyalty attributes associated with single agency.

Thus, the key characteristic of single agency is the exclusive loyalty to one party, making this the correct answer.