What is an Agency Agreement?

Posted by Casandra Properties on Tuesday, September 25th, 2018 at 10:19am.

Agency disclosure defines the relationship between client and agent in all transactions of residential real property.

Agent’s provide this disclosure to make it clear to whom they owe ‘fiduciary' responsibility. With this disclosure in place, all parties involved in a transaction are aware of who is in charge of representing each client’s interest, and to what capacity they represent those interests. Whether you’re looking for an agent to help you acquire a property or sell, you’ll come across this disclosure form when you are signing all of your documents with your potential agent. As given away in the title, this law just mandates the disclosure of whatever agency agreement is in place and an acknowledgment by the client that they understand that relationship. In transactions where Dual Agency in any form is present, clients must be provided with advance consent. 

 

Per New York Senate, here’s a breakdown of the types of agencies:

 

  • Listing Agents have a listing agreement with a client to list real property for sale. 
  • Seller’s Agents work on behalf of a seller to find a buyer for the listed home. 

  *Listing Agents and Seller’s Agents can be the same person but don’t have to be. 

  • Buyer’s Agents work on behalf of home buyers find properties, present offers to sellers, and negotiate agreements.
  • Dual Agents represent both the buyer and seller within the same transaction. 
  • Dual Agency with designated sales agents occurs when a brokerage represents both buyer and seller in the same transaction but assigns different agents within that brokerage to represent both buyer and seller separately. 
  • Broker’s Agents are engaged by Buyer’s or Seller’s agents, who must not be of the same brokerage, to assist. This agent does not have a direct relationship with the buyer or seller. They maintain a relationship with the agent who consulted them, in assisting with the transaction. 

 

While this disclosure can be seen as an added step in the process of finding your next home, it’s a necessary one. With the disclosure, there should complete clarity on your agent’s legal responsibilities to you. While this is one more form to sign, it will make the process more seamless, eliminating any possibility of conflicts of interest that may negatively affect you. 

 

For more information please contact info@casandraproperties.com  or call 718.816.7799.

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