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OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®



 
 

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: Activity 2
What Sellers’ Subagents Can and Can't Do for Buyers

The relationship between the buyer and the seller’s agent is probably the place where the most misunderstandings of the agency relationship and its responsibilities occur.

A subagent representing the seller cannot do any of the following for a buyer without violating the duties owed the seller:

· Suggest the price to offer for a home.

· Reveal information about the seller’s financial condition or moving plans that might influence the negotiation.

· Assist in negotiating the sale on behalf of the buyer.

A subagent representing the seller can do the following for a buyer without violating duties owed the seller:

· Show the buyer listed properties and point out amenities.

· Make factual representations about the property’s conditions and status.

· Transmit any offers made by the buyer to the seller or listing broker.

· Inform the buyer about the availability of financing, legal services, home inspections, and title companies.

Component 10: Scenarios for Recognizing Breaches in Fiduciary Duties

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.