Agency
Agency defines the licensee-client relationship. This topic covers duties, the difference between puffing and misrepresentation, and representation types.
Duties and Honest Dealing
An agent owes fiduciary duties: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care. Disclosure requires promptly delivering offers and material facts to the client. Agents must avoid misrepresentation; puffing (non-factual sales opinion) is generally acceptable, but a false statement of material fact that induces reliance can be fraud or negligent misrepresentation.
Types of Representation
A single agent represents one party; dual agency means representing both, requiring informed consent; and a non-agent or transaction relationship provides services without fiduciary representation. States define these duties by statute. Licensees must disclose their relationship so consumers understand whom the licensee represents.