Buying or selling a home is probably the most important and potentially rewarding financial transaction you will make in your life. It is a good idea to understand the kind of relationship you enter into when you hire a Realtor.

The Agency Relationship

Realtors work within a legal relationship called agency. The agency relationship exists between you, the principal, and your agent, the company under which the individual salesperson who is representing you, is licensed. The essence of the agency relationship is that the agent has the authority to represent the principal in dealings with others.

Agents and their salespeople are legally obligated to protect and promote the interests of their principals as they would their own.

• Specifically, the agent has the following duties:

1. Undivided loyalty: The agent must protect the principal's negotiating position at all times, and disclose all known facts which my affect or influence the principal's decision.
2. To obey all lawful instructions of the principal.
3. An obligation to keep the confidence of the principal.
4. The exercise of reasonable care and skill in performing all assigned duties.
5. The duty to account for all money and property placed in an agent's hands while acting for the principal.

You can expect competent service from your agent, knowing that the company's bound by ethics and the law to be honest and thorough in representing a property listed for sale. Both buyer and seller can be represented by their own agents in a single transaction.