What do YOU need to know about AGENCY?

An Agency is a Consensual, fiduciary relation between two parties (Agent and Principal).  The Agent in a real estate transaction will be the Broker-in-charge of the company while the Principal will be either the buyer or seller (party being represented) by the Agent.  Most buyers/sellers do not understand who their “Agent” really is.  Most real estate agents are in fact Sub-Agents of the Agent.  It is important for you to understand that the real estate agent working directly with you is probably not your legal Agent unless the person directly representing you is the Broker-in-charge.  A fiduciary relationship is in fact a legal relationship which must be established by a written representation agreement.

A real estate brokerage company that provides services through an agency agreement for a client is bound by the duties of loyalty, obedience, disclosure, confidentiality, reasonable care, diligence, and accounting. The following are the permissible agency relationships in South Carolina:

            (1) Seller agency;

            (2) Buyer agency;

            (3) Disclosed dual agency; or

            (4) Sub-agency.

IT IS CRITICAL TO UNDERSTAND:

You will be represented as a customer or a client.  Whether you will be a customer or client will be your decision and law requires this decision be made at first substantive contact with your real estate agent.  You should be very leery of real estate agents offering their services prior to explaining the Agency relationships as required by law.

You are a customer if you have not signed a written agency agreement electing legal representation.  As a customer, your real estate agent owes you Good Faith, Honesty, Present offers, Provide information (cannot interpret), Due care, knowledge and skill,  and disclosure of material facts, but nothing more.  The real estate license law prohibits real estate agents from providing ANY professional service to a customer.  Real estate agents cannot explain or interpret anything for you.  Any information, to include confidential information, you provide to your real estate may be disclosed to the other party and in some cases, it must be disclosed to the other party.

You are a client if you have signed a written agency agreement which guarantees you the legal responsibilities of loyalty, obedience, disclosure, confidentiality, reasonable care, diligence, and accounting.  Real estate agents must represent and promote your best interest while ensuring all of the fiduciary (legal) responsibilities.

Real estate agents providing professional services to customers have created an “implied agency”.  Implied agency is illegal in South Carolina.

For additional information in regards to real estate agency relationships, please send your question by email (CLICK HERE) and we will provide a prompt answer to your question.