Agency
This topic covers how agency is created, the fiduciary duties owed, and the representation options available to licensees.
Creating Agency and Duties
Agency can be created by express agreement, by ratification (later approval of an unauthorized act), or by estoppel (when a principal's conduct leads a third party to reasonably believe an agency exists). The agent owes fiduciary duties: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care. The duty of accounting requires accurate handling and reporting of client funds.
Representation Options
A single agent represents one party; dual agency means representing both, requiring informed consent; and a facilitator or transaction relationship provides services without fiduciary representation. Designated agency assigns separate licensees to each side. Licensees must disclose their relationship so consumers understand whom the licensee represents.