Understanding the 2 Types of Agency in Real Estate
Posted by Kirby Cox on
In common law agency, the agency relationship exists between the client (buyer or seller), and the real estate brokerage (company). If both parties to a transaction are represented by the same brokerage, the brokerage has a conflict of interest. Designated agency is a departure from traditional common law agency practices that addresses this conflict. In designated agency, the agency relationship exists between the client and a designated agent(s) from a particular brokerage, and not with the brokerage as a whole. Royal LePage Foothills declared itself as a designated agency brokerage as of September 1, 2009.
Because the agency relationship is between the client and the designated agent(s), designated agency eliminates the conflicts of interest that…
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