| AGENCY - Who represents whom in the Real Estate
transaction?
EXPLANATION OF AGENCY TERMS
Transaction Broker, Also Known as Facilitator (Not an Agent for
Either Party):
Licensee’s firm is not working as an agent for either party in
this transaction; therefore, this firm is neutral and cannot serve as advocate for either
party in the transaction. (By law, any firm which has not entered into a written agency
agreement with either party in the transaction is considered a transaction broker, until
such time as an agency agreement is established.)
Agent or Subagent for Seller:
Licensee’s firm is working as an agent for Seller and owes a
duty of loyalty to Seller. Even if Licensee is working with a prospective Buyer to locate
property for sale, rent, or lease, it is legally bound to work in the best interests of
any Sellers whose properties are shown to this prospective Buyer. An agency relationship
of this type cannot, by law, be established without a written seller/landlord agency
agreement.
Agent for Buyer:
Licensee’s firm is working as an agent for the prospective
Buyer, owes primary loyalty to Buyer, and will work as an advocate for the best interests
of Buyer. An agency relationship of this type cannot, by law, be established without a
written buyer/tenant agency agreement.
Disclosed Dual Agent (Agent for Both Parties):
Licensee’s firm has become a disclosed agent for both parties
in this transaction. Because of loyal-ties owed to both parties in the transaction,
Licensee(s) involved in a disclosed dual agency relationship cannot legally serve as
advocate(s) for either party, to the detriment of the other party in the transaction.
Designated Agent for Seller:
The individual Licensee is working as an agent for Seller in this
transaction, to the exclusion of all other Licensees in his/her firm. Even if someone else
in Licensee’s firm represents a possible Buyer for this Seller’s property, the
designated agent for Seller will continue to work as an advocate for the best interests of
Seller. An agency relationship of this type cannot, by law, be established without a
written agency agreement.
Designated Agent for Buyer:
The individual Licensee is working as an agent for Buyer in this
transaction, to the exclusion of all other Licensees in his/her firm. Even if someone else
in Licensee’s firm represents a Seller in whose property this Buyer is interested,
the designated agent for Buyer will continue to work as an advocate for the best interests
of Buyer. An agency relationship of this type cannot, by law, be established without a
written agency agreement.
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