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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: Handout 4, Creating a Company Policy on Agency

Component 9: Activity 2, What Sellers’ Subagents Can and Can't Do for Buyers Explanation Sheet

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
Handout 2: The Fiduciary Duties of an Agent

Every agent owes certain fiduciary duties to the principal. Traditionally, these duties include:
  • Loyalty: To act at all times in the best interest of the principal and to put those interests above all others, including yourself.
  • Obedience: To obey promptly all lawful instructions of the principal.
  • Disclosure: To disclose all known, relevant facts to the principal.
  • Confidentiality: To safeguard the principal’s secrets, unless keeping the confidence would violate disclosure requirements about the property’s condition.
  • Reasonable care and diligence: To diligently use real estate skills and knowledge when pursing the principal’s affairs.
  • Accounting: To account for all funds and property entrusted by the principal.
Component 7: Types of Agency Brokerage Relationships with Consumers

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.