AGENCY RELATIONSHIPS IN REAL ESTATE TRANSACTIONS

An agency disclosure is a mandatory legal document in real estate that informs buyers and sellers about the relationship with their broker, detailing if the agent represents them, the other party, or both (dual agency). It must be provided at the first substantive contact to define roles and responsibilities.

Key Aspects of Agency Disclosure:

  • Purpose: It explains the type of agency relationship (e.g., seller's agent, buyer's agent, dual agent) and the duties owed to each party.
  • When Required: It must be disclosed in writing, typically before any confidential information is shared or an offer is written, especially in residential transactions.
  • Dual Agency: If an agent represents both parties, this must be disclosed, and informed consent is required.
  • Not a Contract: The agency disclosure form itself is not a contract, but a disclosure of roles.
  • Content: It generally explains fiduciary duties such as loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care

Types of Agency Relationships:

  • Seller's Agent: Represents the seller's interests.
  • Buyer's Agent: Represents the buyer's interests.
  • Dual Agent: Represents both buyer and seller with their consent.
  • Facilitator/Transaction Broker: Assists both parties without representing either in a fiduciary capacity.
Disclosure: Agency Relationships in Real Estate Transactions page 1
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