AN EXPLANATION OF AGENCY RELATIONSHIP TERMS

 

 

AGENT FOR THE SELLER:

 

The licensee's company is working as an Agent for the Seller of the property and owes primary loyalty to the Seller.  Even if the licensee is working with a prospective buyer to locate property for sale, rent or lease, the licensee and his/her company are legally bound to work in the best interests of any property owners whose property is shown to this prospective buyer.  An agency relationship of this type cannot,  by law, be established without a Written Seller Agency Contract.

 

DESIGNATED AGENT FOR THE SELLER:

 

The individual licensee is working as a Designated Agent for the Seller  in this consumer's prospective transaction, to the exclusion of all other licensees in his/her company.  Even if someone else in this licensee's company represents a possible buyer for this Seller's property, the Designated Agent for the Seller will continue to work as an advocate for the best interest of the Seller.  An agency relationship of this type cannot,  by law, be established without a Written Seller Agency Contract.

 

AGENT FOR THE BUYER:

 

The licensee's company is working as an Agent for the Buyer, and owes primary loyalty to the Buyer, and will work as an advocate for the best interests of the Buyer.  An agency relationship, of this type cannot, by law, be established without a Written Buyer Agency Contract.

 

DESIGNATED AGENT FOR THE BUYER:

 

The individual licensee is working as a Designated Agent for the Buyer in this consumer's transaction (or prospective transaction), to the exclusion of all other licensees in his/her company. Even if someone else in this licensee's company represents a seller in whose property this Buyer is interested, the Designated Agent for the Buyer will continue to work as an advocate for the best interest of the Buyer.  An agency relationship of this type cannot,  by law, be established without a Written Buyer Agency Contract.

 

DISCLOSED DUAL AGENT:

 

The licensee's company - or the individual licensee has become a Disclosed Agent for Both Parties in this consumer prospective transaction.  Because of loyalties owed to Both Parties in the transaction, the licensee(s) involved in a Disclosed Dual Agency relationship must become NEUTRAL and therefore cannot legally serve as an advocates or an advisor for either Party in the transaction.  An agency relationship of this type cannot, by law, be established without a Written Agency Contract with Both Parties.


 

 

FACILITATOR or TRANSACTION BROKER 

(Not an Agent for Either Party):

 

The licensee's company is NOT working as an Agent for either Party in this consumer transaction. This licensee is therefore NEUTRAL and cannot serve as an advocate or advisor for either party in the transaction.  ( By law,  any licensee or company who has not entered into a written agency agreement with either Party in the transaction is considered a Facilitator or Transaction Broker until such time as an agency agreement is established.)

 

CONFIDENTIALITY:

 

By law,  every licensee is obligated to protect some information as confidential.  This includes any information revealed by a consumer which may be helpful to the other party.   IF it was revealed by the consumer BEFORE the licensee disclosed an agency relationship with that other party, any such information which the consumer THEN reveals must be passed on by the licensee to that other party.