Understanding Agency, Introduction
Component 1: Facilitator Talking Points
Component 2: Agenda
Component 3: Handout 1, How is an Agency Relationship Created?
Component 4: Activity 1, Does This Make You an Agent Quiz
Component 5: Activity 1, Answer Sheet for Agent Quiz
Component 6: Handout 2, The Fiduciary Duties of an Agent
Component 7: Handout 3, Types of Agency Brokerage Relationships with Consumers
Component 8: Creating a Company Policy on Agency
Component 9: Activity 2, What Sellers’ Subagents Can and Can't Do for Buyers
Component 10: Activity 3, Scenarios for Recognizing Breaches in Fiduciary Duties
Component 11: Activity 3a: Explanations of Scenarios on Fiduciary Duties
Component 12: Other Resources
|Understanding Agency Relationships: |
How Is an Agency Relationship Created? (Handout 1)
The type of relationship created between the licensee and the consumer establishes a legal framework of duties and responsibilities. Frequently, this is an agency relationship.
An agency relationship is created when:
One person — the agent — agrees to represent the interest of another person — the principal — in a specific transaction. For an agency relationship to exist, the principal must delegate responsibility to the agent, and the agent must consent to accept that responsibility.
Generally, in real estate sales, the listing broker (and through the broker, the salesperson) is the agent, and the seller is the principal.
An agency relationship doesn't require:
Component 4: Does This Make You an Agent Quiz
This information provides general legal information and should not be relied upon as legal guidance. Before acting, both the relevant laws and legal counsel should be consulted. This information should not be construed as specific legal advice nor as an opinion on particular facts, cases, or situations.
© Copyright, 2014, by the NATIONAL ASSOCIATION OF REALTORS®