Agent
Definition and meaning of Agent in real estate.
An agent is a person authorized by another individual, known as the principal, to act on their behalf in business dealings with third parties. In real estate, this relationship is typically established through a written contract and carries significant fiduciary responsibilities.
In more detail
The principal authorizes the agent to represent them, and the actions or statements of the agent can legally bind the principal. Agents owe their clients duties of loyalty, obedience, disclosure, confidentiality, reasonable care, and diligence. It is important to distinguish between a real estate agent and a broker, as agents must work under the supervision of a licensed broker.
Buyers and sellers rely on agents to negotiate terms, draft documents, and navigate complex transactions. Licensees must disclose their agent status to prevent conflicts of interest and protect the public.
Key facts
| Category | Buying & Selling |
|---|---|
| Fiduciary duties | Loyalty, confidentiality, obedience, disclosure, accounting, and care |
| Authorized by | The principal (buyer or seller) |
| Supervised by | A licensed real estate broker |
A homeowner hires a licensed real estate salesperson to serve as their listing agent, authorizing them to market the property and negotiate with potential buyers on their behalf.
Frequently asked questions
What is the difference between a real estate agent and a Realtor?
A real estate agent is licensed by the state to assist with transactions, while a Realtor is a licensed agent who is also a member of the National Association of Realtors and adheres to its code of ethics.
Can an agent represent both the buyer and the seller?
Yes, this is known as dual agency, which is legal in many states but requires the written consent of both parties, though it is illegal in some states.
Related terms
Sources & references
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