The Agency Relationship

Realtors work within a legal relationship called agency. The agency relationship exists between you, the principal, and your agent, the company under which the individual salesperson who is representing you is licensed. What that means is, the agent has the authority to represent the principal in dealings with others.

Agents and their salespeople are legally obligated to protect and promote the interests of their principals as if they were their own.

Specifically, the agent has the following duties:

1. Undivided loyalty – The agent must protect the principal’s negotiating position at all times, and disclose all known facts which may affect or influence the principal’s decision.
2. To obey all lawful instructions of the principal.
3. An obligation to keep the confidences of the principal.
4. The exercise of reasonable care and skill in performing al assigned duties.
5. The duty to account for all money and property placed in an agent’s hands while acting for the principal.
6. You can expect competent service from your agent, knowing that the company is bound by ethics and the law to be honest and thorough in representing a property listed for sale.
7. Both buyer and seller can be represented by their own agents in a single transaction.

Dual Agency
Dual agency occurs when a real estate agent is representing both buyer and seller in the same transaction. Since the agent has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously, it is necessary to limit these duties in this situation, if both parties consent.

If you find yourself involved in a dual agency relationship, before making or receiving an offer both you and the other party will be asked to consent in writing to this new limited agency relationship.