Which type of representation allows for the broker to act on behalf of either party in a transaction?

Dual agency is the correct choice because it specifically refers to a situation where a real estate broker represents both the buyer and the seller in the same transaction. This arrangement allows the broker to act on behalf of both parties, provided that there is informed consent from each. In dual agency, the broker must navigate the interests of both parties carefully to avoid conflicts of interest, ensuring that they do not favor one party over the other.

This differs from single agency, where the broker represents only one party in a transaction, thereby advocating solely for that party's best interests. Loyalty agency is not a commonly recognized term in real estate representation and likely refers to aspects of agency relationships without defining a type of representation. The transaction broker, on the other hand, facilitates the transaction but does not represent either party in the same way that a dual agent does. In a transaction broker arrangement, the broker acts more as a neutral facilitator without the fiduciary responsibilities associated with agency.