What defines the relationship of agency in real estate?

The relationship of agency in real estate is defined by the consent of the parties involved in an immovable property transaction. This means that the principal (the client) grants authority to the agent (the broker) to act on their behalf, which is a key aspect of agency relationships. This consent is typically established through a mutual agreement, and it signifies that the agent will represent the interests of the principal in dealings related to real estate.

The primary focus is that the relationship is built on trust and mutual consent, rather than solely relying on a formal contract. While there may be formal contracts involved, the essence of agency is about the agreement and understanding between the parties regarding the representation and fiduciary duties.

Moreover, because the agency relationship can encompass multiple transactions and extend over time, it is not limited to a one-time agreement for a single transaction, nor does it inherently involve partnerships between brokers. Thus, understanding that this relationship is fundamentally based on the consent of the parties highlights its importance in real estate transactions.