What type of agency relationship exists when two or more clients are represented by different licenses within the same firm?

The concept represented by the correct answer involves a situation where multiple clients are being represented by different licensees under the same brokerage firm. This arrangement is referred to as "in-house agency" because the agency representation takes place within the same company. Each licensee acts on behalf of their respective client, ensuring that the clients receive dedicated attention while still benefiting from the resources of the same firm.

In-house agency is significant as it allows for potential collaboration among agents within the same firm, which can be advantageous in negotiating deals or sharing insights about the market without breaching confidentiality for the clients involved. It matters particularly in scenarios where the firm is managing various listings and buyers, as it can foster efficient communication and service delivery.

Understanding this arrangement is crucial for real estate professionals to navigate agency relationships effectively while upholding fiduciary duties to their clients.