Types of Agency
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Understanding who represents who in a transaction.
Types of Agency Representation: The following descriptions appear on the back of the Agency Disclosure Form.
When a seller engages the services of a listing broker, that seller becomes the
broker's client. This means the broker, and his/her subagents represent the seller. They owe the seller undivided loyalty, utmost care, disclosure, obedience to lawful instruction, confidentiality and accountability. They must put the seller's interest first and negotiate for the best price and terms for their client, the seller. (The seller may also authorize subagents to represent him/her in marketing the property to buyers).
When a buyer engages the services of a broker, then that buyer becomes the broker's client. This means the broker represents the buyer. The broker owes the buyer un-
divided loyalty, utmost care, disclosure, obedience to lawful instruction, confidentiality and accountability. The broker must put the buyer's interest first and negotiate for the best price and terms for his/her client, the buyer. (The buyer may also authorize subagents to represent him/her in locating property).
Disclosed Dual Agent
A broker can work for both the buyer and the seller on the same property provided
such broker obtains the informed consent of both parties. The broker is then consid-
ered a disclosed dual agent. This broker owes the seller and the buyer a duty to deal with them fairly and honestly. In this type of agency relationship, the broker does not represent either the seller or buyer exclusively and they cannot expect the broker's undivided loyalty. Also, undisclosed dual agency is illegal.