Few situations occur that involve the professional real estate associate to act as an agent of a client nowadays. If you understand the provisions as well as the terms that affect your situation. The term express agency relates to a written or oral agreement that is between an agent and the principal. When related to real estate, this verbal or written agreement is made as a listing agreement which is between a buyer agency agreement and a buyer or a listing agreement that has been written up. There are some states that allow agreements to be made verbally, but not many.
Majority of states will require a type of disclosure made out for the prospective client or client stating how the agent will represent them in this real estate matter. It is important that you understand the rules of your state and in what way you can be considered to be a representative legally. Depending on the situation that you agreed to in a contract, the obligations and duties will vary. Pay attention to laws that determine whether or not a person is considered and agent or not. It is also important to be sure that you are not offering any services that you do not have qualifications to offer.
How Vicarious Liability is Assigned
An agency that a professional in real estate has in regards to a client is often what comes with vicarious liability. Real estate professionals can operate as several various types of agencies, like those listed below.
Dual Agency- A dual agent is an agent that choose to work with both the seller and buyer of a home. Representation of this kind has to be discussed and approved by all parties involved as the agent in this situation will be representing two conflicting party’s interests. It can be a struggle to satisfy both parties in this situation as accountability and confidentiality for both parties is vital.
Single Agency- A single agent works for either a seller or buyer as an agent. It is required by most states that the agent discuss how the client will be represented by the agent over the course of the agreement.
Subagency- This is where a seller chooses to allow the broker to utilize agents that are from outside firms in order to achieve the buyers ideal property. The sub-agent will owe the seller the fiduciary duties, unlike in most cases where these would go to the buyer.