AGENCY
Agency relationship is the fiduciary relationship which results when one person, called the agent, represents the interests of another person, called the principal, in dealings with others. An agency relationship is formed between the brokerage firm (including all its licensees) and the principal.
SELLERS AGENT (Listing Agent)
The seller’s agent (listing agent) is an agent who has obtained a listing of real property to act as an agent of the seller for compensation. This is an agent who represents the seller, markets the seller’s property, negotiates on behalf of the seller and acts for the seller under authority.
BUYERS AGENT (Selling Agent)
The buyer’s agent (selling agent) is an agent who represents the buyer in a real estate transaction, regardless of whether the agent’s compensation is paid by the buyer or by the seller or through a commission split with the listing agent
DUAL AGENT
A dual agent is an agent acting, either directly or through an associate licensee, as an agent for both the seller and buyer in a real property transaction. Dual agency is an agency relationship where one brokerage firm represents both the buyer and seller in the same real estate transaction. If two salespersons work for one broker and one salesperson represents the seller and the other salesperson represents the buyer it is still considered dual agency because both salespersons work for the same broker.
CONFIDENTIALTY
When acting only as a seller’s agent or only as a buyer’s agent there is an obligation to use confidential information solely in the best interest of the represented principal. When acting as a dual agent each party is entitled to know the confidential information that the agent has about the other with only one exception: The dual agent shall not disclose to the buyer that the seller is willing to sell the property at a price less than the listing price without the express consent of the seller. The dual agent shall not disclose to the seller that the buyer is willing to pay a price greater than the offering price without the express consent of the buyer.
STATISTICS
In a survey of single family homes sold during 2009 in Covina, Diamond Bar, Rowland Heights, Walnut and West Covina only about 1 out of 5 homes had a buyer found by the listing agent. For 4 out of 5 homes someone other than the listing agent found the buyer.
FORMS
Disclosure Regarding Real Estate Agency Relationship-AD
Disclosure and Consent for Representation of More Than One Buyer or Seller-DA