Agency Relationships in Delaware
Delaware requires licensees to disclose agency relationships and recognizes seller, buyer, dual, and designated agency. This chapter explains disclosure, duties, and dual agency.
Agency Disclosure
Delaware licensees must disclose the nature of their agency relationship to consumers so consumers understand whether the licensee represents the seller, the buyer, both, or neither before they share confidential information. Disclosure should be made early in the relationship. Clear disclosure helps consumers make informed decisions about representation and reduces later disputes.
Agency Roles and Fiduciary Duties
A seller's agent represents the seller and owes fiduciary duties to that client, while a buyer's agent represents the buyer. In all roles the licensee owes honesty, disclosure of known material facts, and reasonable care. A licensee who represents a client owes loyalty, confidentiality, obedience, accounting, and full disclosure, while a customer who is not a client is owed honesty and fair dealing.
Dual and Designated Agency
A licensee may represent both the buyer and the seller as a dual agent only with the informed written consent of both parties, remaining neutral and protecting each party's confidential information. Delaware also permits designated agency, in which a broker names individual licensees to represent the buyer and the seller separately within the same firm. Both arrangements require disclosure and consent.