What type of relationship does agency imply in real estate?

Agency in real estate creates a consensual representation of a client by a broker, which is the essence of the relationship. This means that the client agrees to allow the broker to act on their behalf, typically in the process of buying or selling property. The broker has a fiduciary duty to represent the client’s best interests, maintain confidentiality, and disclose relevant information, establishing a trust-based relationship centered on mutual benefit.

This understanding emphasizes the formal nature of agency, where the broker is authorized to perform specific acts, such as negotiating terms and facilitating transactions, all while adhering to legal and ethical standards. Such a relationship is distinguished from more casual interactions or competitive dynamics, as it mandates a legal recognition of responsibility and duty between the client and broker.