You will not provide the customer any services that require the exercise of discretion or judgment, the giving of confidential advice, or advocating on their behalf. You are not the consumer’s agent and do not owe them fiduciary duties. In customer status, your brokerage does not represent the consumer. The agent is expected to meet the standard of care that a reasonable and competent industry member would exercise in a similar situation.įull accounting: The agent must account for all money and property placed in the agent’s hands while acting on the client’s behalf.Ĭustomer status is when a licensees performs certain tasks and services for a consumer, but they are not the agent of that consumer and are not working on the consumer’s behalf.Ĭustomer status is appropriate for consumers who do not want to have an agency relationship with you, but still want your services to help them facilitate a transaction. Reasonable care and skill: The agent must exercise reasonable care and skill in performing all assigned duties. If the client insists the agent do something unlawful, the agent would be obliged to refuse, and consider terminating the relationship and existing service agreement. Obedience: The agent must obey all of the client’s lawful instructions, as long as instructions are reasonable and ordinary under the circumstances. However, the agent cannot disclose any confidential information from a previous agency relationship to the client unless the previous client agrees in writing. The agent should not decide if information is important to the client, rather, the agent is obligated to disclose all relevant information to the client. This includes any conflicts of interest the agent might have in providing services to the client. The duty of confidentiality continues even after the agency relationship ends.įull disclosure: the agent must inform the client of all facts known to the agent that might affect the relationship with the client or influence the client’s decision in the transaction. Confidential information includes any information about the client, the property, or the transaction that is not required by law to be disclosed, but if disclosed could be used by another party to the disadvantage of the client. This means avoiding conflicts of interest and protecting the client’s negotiating position at all times.Ĭonfidentiality: the agent has a duty to keep the client’s confidences. Undivided loyalty: the agent must act solely in the client’s best interests, must always put the client’s interests above the agent’s own interests and above the interests of other parties. Specifically, a sole agent owes his or her clients the following duties: the licensees) are obligated to protect and promote the interests of their clients. Sole agency is a relationship in which the brokerage or licensee acts as the agent for only one party in a trade. Consumers can decline to sign, but by doing so, the brokerage cannot represent them.
Dual cl 101 professional#
These agreements provide clarity and transparency regarding the nature of the agency relationship, and explain the duties and obligations of the professional and the consumer. Consumers must enter a written service agreement, as it offers valuable protection for real estate professionals and consumers. If a consumer interested in residential real estate or property management wants to be in an agency relationship, the brokerage representative will ask the consumer to sign a written service agreement that confirms the consumer’s decision. An agency relationship develops when the brokerage professional and consumer agree that the brokerage’s professional will represent the consumer in a transaction. When a buyer or seller first contacts a brokerage or brokerage professional, there is no agency relationship. But the legally defined ‘agent’ of the consumer is the brokerage itself, or the individual(s) that the brokerage names as ‘designated agent(s).’ When people say, “real estate agent,” they typically mean the associates or associate brokers who work with consumers directly.
In a typical real estate deal, the brokerage or brokerage professional will act as the ‘agent’ for the consumer. Agency is a relationship established when two parties agree to have one party represent the other party or provide services on behalf of that party.
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