What does the dictum 'there can only be one client in a transaction' imply?

The statement 'there can only be one client in a transaction' indicates that an agent has a singular fiduciary relationship with one client throughout a specific transaction. This principle is central to maintaining a clear and focused duty of loyalty and responsibility. By designating one party as the client, the agent can provide dedicated representation that aligns with that client's interests without the risk of conflicting loyalties.

This concept underscores the agent's obligation to advocate for and protect the client's interests above all others. In real estate transactions, when an agent represents a buyer, their responsibility is to act in the best interest of that buyer alone, ensuring that fiduciary responsibilities are upheld effectively.

The other contexts of the options reflect different scenarios that do not align with the meaning of this dictum. Accepting payments from multiple parties can create conflicts of interest, while allowing clients to switch agents mid-transaction could disrupt the continuity required for effective representation. Representing third parties in typical client-agent relationships does not encapsulate the essence of having only one client at any given time in a transaction, which is crucial for maintaining the integrity of the agent-client relationship.