Understand Agency Relationships
It's
important
to
understand
what
legal
responsibilities
your
real
estate
salesperson
has
to
you
and
to
other
parties
in
the
transaction.
Seller's
representative
(also
known
as a
listing
agent
or
seller's
agent)
A
seller's
agent
is
hired
by
and
represents
the
seller.
All
fiduciary
duties
are
owed
to
the
seller.
The
agency
relationship
usually
is
created
by a
listing
contract.
Buyer's
representative
(also
known
as a
buyer's
agent)
A
buyer's
agent
is
hired
by
prospective
buyers
to
represent
them
in a
real
estate
transaction.
The
buyer's
rep
works
in
the
buyer's
best
interest
throughout
the
transaction
and
owes
fiduciary
duties
to
the
buyer.
The
buyer
can
pay
the
licensee
directly
through
a
negotiated
fee,
or
the
buyer's
rep
may
be
paid
by
the
seller
or
through
a
commission
split
with
the
seller's
agent.
Subagent
A
subagent
owes
the
same
fiduciary
duties
to
the
agent's
customer
as
the
agent
does.
Subagency
usually
arises
when
a
cooperating
sales
associate
from
another
brokerage,
who
is
not
the
buyer's
agent,
shows
property
to a
buyer.
In
such
a
case,
the
subagent
works
with
the
buyer
as a
customer
but
owes
fiduciary
duties
to
the
listing
broker
and
the
seller.
Although
a
subagent
cannot
assist
the
buyer
in
any
way
that
would
be
detrimental
to
the
seller,
a
buyer-customer
can
expect
to
be
treated
honestly
by
the
subagent.
It
is
important
that
subagents
fully
explain
their
duties
to
buyers.
Disclosed
dual
agent
Dual
agency
is a
relationship
in
which
the
brokerage
firm
represents
both
the
buyer
and
the
seller
in
the
same
real
estate
transaction.
Dual
agency
relationships
do
not
carry
with
them
all
of
the
traditional
fiduciary
duties
to
clients.
Instead,
dual
agents
owe
limited
fiduciary
duties.
Because
of
the
potential
for
conflicts
of
interest
in a
dual-agency
relationship,
it's
vital
that
all
parties
give
their
informed
consent.
In
many
states,
this
consent
must
be
in
writing.
Disclosed
dual
agency,
in
which
both
the
buyer
and
the
seller
are
told
that
the
agent
is
representing
both
of
them,
is
legal
in
most
states.
Designated
agent
(also
called
appointed
agent)
This
is a
brokerage
practice
that
allows
the
managing
broker
to
designate
which
licensees
in
the
brokerage
will
act
as
an
agent
of
the
seller
and
which
will
act
as
an
agent
of
the
buyer.
Designated
agency
avoids
the
problem
of
creating
a
dual-agency
relationship
for
licensees
at
the
brokerage.
The
designated
agents
give
their
clients
full
representation,
with
all
of
the
attendant
fiduciary
duties.
The
broker
still
has
the
responsibility
of
supervising
both
groups
of
licensees.
Nonagency
relationship
(called,
among
other
things,
a
transaction
broker
or
facilitator)
Some
states
permit
a
real
estate
licensee
to
have
a
type
of
nonagency
relationship
with
a
consumer.
These
relationships
vary
considerably
from
state
to
state,
both
as
to
the
duties
owed
to
the
consumer
and
the
name
used
to
describe
them.
Very
generally,
the
duties
owed
to
the
consumer
in a
nonagency
relationship
are
less
than
the
complete,
traditional
fiduciary
duties
of
an
agency
relationship.