In a real estate transaction, whom may a licensee represent?

In a real estate transaction, a licensee may represent either a client or a customer, which is why this answer is correct.

A "client" is someone with whom a formal agency relationship exists, and the licensee has a fiduciary duty to act in the client's best interests. Conversely, a "customer" does not have such a formal relationship with the licensee; instead, the licensee can provide certain services but does not owe the same level of loyalty or duty to them as they do to a client. This distinction is crucial because it guides the level of care, confidentiality, and advocacy that the licensee must provide in the transaction.

The other options are more restrictive in their scope. Representing only the seller or only the buyer does not encompass the complete range of possibilities in real estate transactions. Additionally, real estate agencies themselves are entities that the licensee may work for or operate within, but they do not represent parties in transactions in the same way that a licensee represents clients or customers.