All REALTORS® are required to explain the nature of their relationship with all parties whom they contact in connection with a Real Estate transaction. This is often referred to as "Agency Disclosure" since the REALTOR® must establish and disclose whether you will be their "Client" or their "Customer". There are substantial differences in the duties owed and the services provided to Clients and Customers, and you should be familiar with your options before committing to either.
While the term "Agent" is not specific to the Real Estate industry, most Real Estate Salespeople, Brokers and REALTORS® act as Agents when conducting business. An Agent is commonly defined as any person who represents another person in a business transaction.
A person in a position of trust and confidence who must put the interests of another person (their client) above all others.
An agency relationship is created when a person, known as the client, asks another person, known as an Agent, to act for and on their behalf in a business transaction. In a typical Real Estate transaction, an Agency Relationship is created when a Seller or Buyer asks a REALTOR® to be their Agent. There are two basic types of agency relationships:
While a complete discussion of agency extends well beyond this short summary, your REALTOR® would be happy to answer any questions and provide further details.