Who do cooperating brokers represent when engaged in a real estate transaction?

The correct choice is based on the principle of agency in real estate transactions. Cooperating brokers represent the party they have a formal agency agreement with, which can be either the seller or the buyer. This relationship establishes a fiduciary duty, meaning the broker is obligated to act in the best interests of their client.

In many cases, cooperating brokers work under a multiple listing service (MLS) agreement, where they may represent buyers or sellers depending on individual arrangements. Therefore, their representation is defined by the agency relationship they establish, distinguishing them as either a buyer's agent or a seller's agent. This flexibility in representation is crucial for facilitating transactions, as it enables a more collaborative environment within the real estate market.

In contrast, the other options suggest limited or incorrect representations. For instance, stating that cooperating brokers only represent the seller or only the buyer overlooks the fundamental nature of agency, which allows brokers to represent whichever party they have an agreement with. Furthermore, the idea that they could be representing the real estate board does not align with the fundamental role of cooperating brokers, as they do not represent organizational bodies but rather individual clients in transactions.