Agency Relationships

When real estate professionals work with buyers and sellers, “agency” relationships are established. As you start working with a real estate professional, please ask for a clear explanation of your state's/province's current agency laws, so that you understand these important issues.

There are three kinds of agency relationships:

• Buyer's agent - represents the buyer during the home buying process.  The buyer's real estate professional (agent) has a fiduciary responsibility to represent the buyer's best interests including reasonable care, loyalty and confidentiality.
• Seller's agent - represents the interests of the seller and has a fiduciary responsibility of reasonable care, loyalty, confidentiality and disclosure to the seller. A seller's real estate professional (agent) works to assist the seller in locating a buyer and in negotiating a transaction suitable to the seller's specific needs.
• Disclosed dual agent - represents the interests of both the seller and the buyer, during the same transaction. A dual agent has responsibilities to both seller and buyer and must act in the best interests of both parties.