Ideas By Sky

Commonly, the broker or its agent will have an agency relationship with the consumer. An agency relationship is defined as “a relationship whereby the broker or licensees in the employ of the broker act as fiduciaries for a consumer of real estate services by the express authority of the consumer of real estate services.” Furthermore, “an agency relationship is not to be presumed and that it will exist only as set forth in a written agreement between the broker and the consumer of real estate services acknowledged by the consumer.”

The following definitions explain the permissible roles in a real estate transaction:

• Consumer—A person who is the recipient of any real estate service.
• Principal—A consumer of real estate services who has entered into an agency relationship with a broker.
• Seller agent—Any licensee who has entered into an agency relationship with a seller of real estate.
• Subagent—A broker, not in the employ of the listing broker, who is engaged to act for or cooperate with the listing broker in selling property as an agent of the seller. A subagent is deemed to have an agency relationship with the seller.
• Listing broker—A broker engaged as a seller’s agent, dual agent, or transaction licensee to market the property of a seller/landlord.
• Dual agent—A licensee who acts as an agent for the buyer and seller or lessee and landlord in the same transaction.
• Designated agent—One or more licensees designated by the employing broker with the consent of the principal to act exclusively as agent(s) on behalf of the principal to the exclusion of all other licensees within the broker’s employ.

Transaction licensee—A licensed broker or salesperson who provides communication or document preparation services or performs acts described under the definition of broker or salesperson for which a license is required, without being an agent or advocate of the consumer.