1. Seller’s Agent
2. Buyer’s Agent
3. Dual Agent
4. Broker’s Agent
5. Dual Agent with Designated Sales Agents
Each carries with it legal duties & responsibilities on the part of the broker/salesperson as well as the seller and buyer. After reading the explanations of agency relations below, you will be asked to acknowledge receipt of this form.
Seller's Agent: A seller's agent acts solely on behalf of the seller. A seller's agent has fiduciary duties to the seller which include reasonable care, undivided loyalty, confidentiality & full disclosure.
Seller's agents often work with buyers, but do not represent the buyer. However, in working with a buyer, a seller's agent must act honestly and fairly. A seller's agent must also disclose all information material to any transaction which is known by the broker.
Buyer's Agent: An agent can agree to act as an agent for the buyer. A buyer's agent acts solely on behalf of the buyer. A buyer's agent has fiduciary duties to the buyer which include reasonable care, undivided loyalty, confidentiality and full disclosure. Buyer's agents often work with sellers, but do not represent the seller. However, in working with a seller, a buyer's agent must act honestly and fairly.
Dual Agent: Dual agency occurs when a real estate firm representing the buyer shows the buyer properties where the firm has also agreed to be the agent of the seller. A real estate firm can be the agent of both the buyer & seller in a transaction with the knowledge and written consent of the buyer and seller.
A real estate firm acting as a dual agent must carefully explain to both buyer and seller that they are representing both parties and their fiduciary duties are different if they represent both parties.
When representing both seller and buyer, the agent must have the express permission of the respective party in order to disclose confidential information to the other party, such as price, terms and motivation to sell or buy.
Broker’s Agent: A broker’s agent is an agent that cooperates or is engaged by a listing agent or a buyer’s agent (but does not work for the same firm as the listing agent or buyer’s agent) to assist the listing agent or buyer’s agent in locating a property to sell or buy, respectively, for the listing agent’s seller or the buyer agent’s buyer. The broker’s agent does not have a direct relationship with the buyer or seller and the buyer or seller cannot provide instructions or direction directly to the broker’s agent. The buyer and the seller therefore do not have vicarious liability for the acts of the broker’s agent. The listing agent or buyer’s agent do provide direction and instruction to the broker’s agent and therefore the listing agent or buyer’s agent will have liability for the acts of the broker’s agent.
Dual Agent with Designated Sales Agents: If the buyer and the seller provide their informed consent in writing, the principals or the real estate broker who represents both parties as a dual agent may designate a sales agent to represent the buyer and another sales agent to represent the seller to negotiate the purchase and sale of real estate. A sales agent works under the supervision of the real estate broker. With the informed consent of the buyer and the seller in writing, the designated sales agent for the buyer will function as the buyer’s agent representing the interests of and advocating on behalf of the buyer and the designated sales agent for the seller will function as the seller’s agent representing the interests of and advocating on behalf of the seller in the negotiations between the buyer and seller. A designated sales agent cannot provide the full range of fiduciary duties to the buyer or seller. The designated sales agent must explain that like the dual agent under whose supervision they function, they cannot provide undivided loyalty. A buyer or seller should carefully consider the possible consequences of a dual agency relationship with designated sales agents before agreeing to such representation.
