Agency

• Agency is a relationship between an agent and a principal. That principal might be a buyer or seller in a real estate transaction, where the agent represents the buyer or seller. When a seller lists property with a real estate agent, this creates an agency relationship. Should the listing agent represent both the seller and buyer in the transaction, both the seller and buyer must agree in writing to a dual agency, whereby the agent represents the interests of both sides. In some states, dual agency is illegal.
  
  

Agent

• An agency relationship between an agent and a principal creates a fiduciary relationship under the law of agency. The agent has a fiduciary duty toward the buyer or seller she represents. The agent works in the best interest of the principal, keeping the principal’s trust and confidence. If an agent to a seller has an open house on the seller’s property, and a buyer comes to the open house and asks questions, the buyer should assume that, unless there is a dual agency agreement, the agent is the seller’s and is working in the seller’s best interest, not the buyer’s.
  
  

Buyer's Agent

• In residential real estate, a broker or salesperson representing solely the buyer is a buyer’s agent. In this instance, the agent owes his fiduciary duty to the buyer in the transaction. Some real estate licensees specialize as buyer’s agents. The buyer instructs the buyer’s agent. It is the fiduciary duty of the buyer’s agent to follow the legal instructions of the client in regards to the real estate transaction.
  
  

Broker's Agent

• A broker’s agent is a real estate licensee who assists another licensee or broker from another real estate office. For example, if a buyer’s agent has a client looking for property in another part of the state, the broker’s agent, who is more familiar with the region, assists the buyer's agent in finding his client property. The broker’s agent does not deal directly with the broker’s client. Instead, the broker’s agent deals with the broker. The broker directs the broker’s agent, not the client of the broker.