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.
Often referred to as a Principal, a Client is a person who asks an Agent to act
on his or her behalf during the purchase, sale, exchange or rental of a property
or business. An Agent owes their clients full fiduciary duties, such as loyalty,
confidentiality, accountability, duty of care, obedience to all lawful
instructions, and full disclosure of all pertinent facts.
A customer is a person who has not retained an Agent to work on his or her
behalf. While a customer does not enjoy the fiduciary duties and benefits of the
Client-Agent Relationship, they are nevertheless entitled to be treated fairly,
honestly and with due care at all times.
TO TOP OF PAGE
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:
When an Agent exclusively represents a single client's interests in a
transaction, it is known as Single Agency.
In certain circumstances an agent may represent both the Seller and the Buyer
in a Real Estate transaction. Because a Dual Agent owes the same fiduciary
duties to both clients, it is often difficult to ensure that everyone's best
interests are being protected. Because of this, the written informed consent
of both the Seller and the Buyer is usually required before an Agent may
While a complete discussion of agency extends well beyond this short summary,
I would be happy to answer any questions and provide further details. Just give
me a call at (715) 498-1248 or visit the Contact page.
TO TOP OF PAGE
Mike Burns, CRS,
The Real Estate Group, Inc
5725 Windy Dr Suite E
Stevens Point, WI 54482
Direct: 715 295-5008
Cell: 715 498-1248
Fax: 715 295-5006