The concept of Agency spans far beyond the scope of real estate sales. This area of law is very interesting and detailed in scope. Most people recognize the Agency relationship in a couple of common areas: Listing Agreements and Buyer Agreements. These formalized documents serve a great purpose in establishing a clear, well understood agency relationship.

Two things are interesting about this area. The first thing is the fact that in many ways an agency relationship can be created unexpectedly when involved parties perform certain actions. By acting as if an agency relationship is in place, very often it is in place by the concept of implied agency. In my opinion, you are best to clearly define the relationship than to have it take place by default. Doing so will allow you to be more formally aware of the rights, loyalty and duties that an agent should be providing you.

The second thing that is interesting are the bundle of fudiciary responsibilities that are required as soon as this type of relationship is established. The bottom line is that your real estate salesperson is obligated to look out for your best interests (not their own). If they do bring in a buyer client whom they owe the same loyalty, they are required to inform you of this dual agency situation. Your salesperson should be keeping your best interests at heart, providing competent service and keeping confidential information to themselves.

By the way, don't shy away from a dual agency situation. If this is handled by a professional, many times it can lead to a very positive experience. Today's society favours available facts and easily located information with which to make decisions. A dual agency can put more information on the table and make the process very clear and easy. This is all contingent on the fact that your representative is well versed in professional client relationships.