Understanding Agency
It’s important to understand what legal responsibilities your real estate salesperson has to you and
to other parties in the transactions. Ask your salesperson to explain what type of agency
relationship you have with him or her and with the brokerage company.
1. 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.
2. Subagent. A subagent owes the same fiduciary duties to the agent's principal as the agent does.
Subagency usually arises when a cooperating sales associate from another brokerage, who is not
representing the buyer as a buyer’s representative or operating in a nonagency relationship, 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.
It’s important to understand what legal responsibilities your real estate salesperson has to you and
to other parties in the transactions. Ask your salesperson to explain what type of agency
relationship you have with him or her and with the brokerage company.
1. 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.
2. Subagent. A subagent owes the same fiduciary duties to the agent's principal as the agent does.
Subagency usually arises when a cooperating sales associate from another brokerage, who is not
representing the buyer as a buyer’s representative or operating in a nonagency relationship, 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.
3. Buyer's representative (also known as a buyer’s agent). A real estate licensee who 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 by a commission split with the listing broker.
4. 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 the 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.
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 by a commission split with the listing broker.
4. 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 the 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.
No Igloos.Com
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Rancho Mirage Office
71-691 Highway 111
Rancho Mirage, CA
92270
Cell (760) 636-6871
Bus. (760) 770-6801
Email Me Questions
71-691 Highway 111
Rancho Mirage, CA
92270
Cell (760) 636-6871
Bus. (760) 770-6801
Email Me Questions
Mikel Springer
Realtor
License #:
01848300
Realtor
License #:
01848300
No Igloos ... Just desert homes.
