Agency, in its basic form, is one person acting on behalf of another, with the consent of both the agent and the principal (client), and the agent acts under the control of the principal. There is always a delegation of authority. Agents owe their clients full fiduciary duties, which are the highest duties there are. We work for our clients and we work with customers. We provide clients with advice, opinions, advocacy and negotiation strategy, which we do not provide to customers. Customers are entitled to accurate information, honesty and fair dealings, and disclosure of material facts about the property.
Intermediary brokerage, also a agency relationship, occurs in one situation and one situation only: when a represented buyer or tenant is interested in offering on one of the firm's listings. It is the only agency relationship that MUST be in writing, and the broker must follow The Real Estate Licensing Act. Only the broker is the intermediary, and is unable to provide preferential advice or opinion to either party, and must treat all parties fairly, and keep confidential information confidential. The intermediary MAY choose to appoint one or more sponsored licensees to the buyer and one or more to the owner, and those appointed licensees then give advice and opinion to the respective parties.... more