DAY 3 — Agency (VERY IMPORTANT)

Who is an agent?

Person representing a client in a transaction

Who is the client?

Person the agent represents

Who is the customer?

Person not represented, but still involved

Types of agency?

Single, Dual, Transaction broker

What is single agency?

Agent works for one side only

What is dual agency?

Agent works for both buyer & seller (must disclose)

What is transaction broker?

Neutral, helps both sides without loyalty

Key agency rule?

“Agent = loyalty to client, not customer”

Can an agent represent both sides without disclosure?

No, must disclose

What duties does an agent have?

Obedience, loyalty, disclosure, confidentiality, accounting, reasonable care

What is fiduciary duty?

Agent’s legal duty to act in client’s best interest

Can a customer sue an agent for breach of fiduciary duty?

No, fiduciary duty is only to client

What is the difference between agent & broker?

Broker can hire agents & run office; agent works for broker

Example of single agency?

Listing agent for seller only

Example of dual agency?

Broker represents both buyer & seller

Example of transaction broker?

Facilitates paperwork, no loyalty to either side

Why study agency carefully?

Appears frequently on the test

What is disclosure?

Sharing all material facts with client

Can an agent give advice to customer?

Only general information, not legal advice

Quick memory trick

“Agent = loyalty to client, neutral for customer”