The term “agency” is used in real estate to help determine what legal responsibilities your real estate professional owes to you and other parties in the transaction. 

SELLER AGENCY Definition: “Seller’s Agent” means a real estate broker or real estate salesperson who acts in a fiduciary capacity for the seller and/or lessor in a real estate transaction. When a seller or lessor enters into an agreement for representation with a seller’s agent, the seller or lessor becomes the seller’s agent’s client. The seller or lessor may authorize the seller’s agent to contact other brokers, including associates of other real estate firms, to represent the seller or lessor in marketing their property as seller’s agents. This means both the seller’s agent and these other brokers represent the seller or lessor. The seller’s agent owes the seller or lessor undivided fiduciary obligations, such as: loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accountability. The seller’s agent must put the seller’s or lessor’s interest first and negotiate for the best terms and conditions for the seller’s agent’s client. 

BUYER AGENCY Definition: “Buyer’s agent” means a real estate broker or real estate salesperson who acts in a fiduciary capacity for the buyer and/or lessee in a real estate transaction. When a buyer or lessee enters into an agreement for representation with a buyer’s agent, the buyer or lessee becomes the buyer’s agent’s client. The buyer or lessee may authorize the buyer’s agent to contact other brokers, including associates of other real estate firms, to represent the buyer or lessee. The buyer’s agent owes the buyer or lessee undivided fiduciary obligations, such as: loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accountability. The buyer’s agent must put the buyer’s or lessee’s interest first and negotiate for the best terms and conditions for the buyer’s agent’s client. 

DUAL/DESIGNATED AGENCY Definition: “Dual Agent” means a real estate broker or real estate salesperson who represents both the seller and buyer or lessor and lessee. A designated agent appointed by the Brokerage Firm owes the party for whom they have been designated undivided fiduciary obligations. This happens when a Buyer of the real estate firm buys one of the firm’s listings. When the buyer is buying a listing of the agent with whom they are a signed Buyer Client, that agent can become a Disclosed Dual Agent with written consent from both parties. The dual agent owes the buyer and seller or lessor and lessee a duty to deal with them fairly and honestly. In this type of agency relationship, the dual agent does not represent either the buyer and seller or lessor and lessee exclusively and the parties cannot expect the dual agent’s undivided loyalty. 

LESSOR AND LESSEE Definition: “Lessor” means the person who rents or leases property to another. “Lessee” means the person to whom property is rented or leased.