Agency Terminology

Undisclosed Dual Agent

A licensee who represents BOTH the buyer and seller but without the knowledge and consent of both parties.

Disclosed Dual Agent

A licensee who represents BOTH the buyer and seller with the consent of both parties.

Special Agency

Narrow authority given by a principal to an agent to conduct a single set of affairs, such as to list and sell their property.

Informed consent to dual agency

Prior to representing both sides in a real estate transaction, each client must provide written informed consent to the one agent representing them both in the same transaction

Fiduciary duties

The duties an agent owes her principal, always putting the principal's interests ahead of those of others, including the agent's own interests. (OLD CAR)

Single Agent

an agent who represents only one party, such as only the buyer or seller.

Express agency

an agreement, oral or written, between a principle and agent that clearly delineates the duty being assigned by the principle and accepted by the agent.

Principal

The person to whom an agent owes a fiduciary duty, such as the buyer to a broker or the broker to an employed salesperson.

Buyer's agent

who only represents the buyer.

Agent

a person who acts on behalf of the principal in a business transaction

Fiduciary

A person retained by a principal in a position of trust.

Implied Agency

An agency relationship that's created by the actions of the parties without explicit understanding.

Seller's Agent

The "Listing agent," who only represents the seller.

Sub-agent

When a person acts under the direction of an agent to help the principal attain their goals given to that agent

Ratification

When an implied agency exists and the parties later expressly confirm the relationship (usually in writing), that is ratification

Universal Agency

Where a principal gives unlimited authority to an agent.

Client

A person you work FOR. One who is a principal, whose interests are represented by an agent.

Customer

A person you work WITH. The client of the other agent or broker.

General Agency

Granted by a principal to an agent to conduct a broad range of affairs and duties—more than those of a special agent but not the unlimited authority given to a person with universal agency.