Agency
Agency defines the legal relationship between licensees and the clients they represent. Fiduciary duties shape how licensees must act throughout a transaction.
Creating Agency and Fiduciary Duties
Agency is usually created by an express agreement such as a listing or buyer-representation contract. The agent owes fiduciary duties often summarized as care, obedience, loyalty, disclosure, confidentiality, and accounting. These duties require the agent to place the client's interests first.
Types of Agency Relationships
Single agency represents only one party, while dual agency represents both buyer and seller and requires informed written consent. Designated agency assigns different licensees within one brokerage to each party. A licensee who assists a customer without representing them acts in a non-agency or facilitator role.