Seller Agency
most common form of agency relationship
Subagency
most confusing form of all agency relationships
Seller or Cooperating Broker
with permission of the seller, listing agent appoints brokers to perform actions on behalf of the seller
they are NOT the listing broker
Created by written agreement (express) or created by words or actions (implied) often within the structure of an MLS, but does not have to be
subagency
1970s National Association of REALTORS regulations for subagency within MLS
if a seller authorized their agent to list their property on an MLS, the seller was automatically authorizing the broker to make a unilateral blanket offer of subagency to all other members of that MLS
Acceptance of unilateral blanket offer according to 1970s NAR regulations for subagency within MLS
any agent that showed the listed property on MLS automatically became a subagent of the listing broker and seller
No, it permits subagency, but does NOT automatically create it or require it.
seller can agree to accept or reject the option of subagency when they sign the listing contract
cooperating broker may reject the offer of subagency and choose to work as a buyer's broker/agent
Does placing a listing in a MLS create a blanket unilateral offer of subagency today?
the seller
if a cooperating broker accepts the offer of subagency, who does the cooperating broker owe fiduciary responsibilities to?
Deal honestly, and ethically with all buyer customers
fair dealing
reasonable care and skill
proper disclosure
What responsibilities does an agent owe to a customer?
Dual Agency
exists when a real estate firm or real estate licensee represents BOTH the buyer and seller or landlord and tenant in the same transaction
must be disclosed in writing to both the buyer and seller
Undivided Loyalty
A fiduciary obligation that is given up by both the buyer and seller when they consent to dual agency
Undisclosed Dual Agency
A relationship in which the real estate agent is found to be the agent of both the buyer and seller in a transaction, but without the knowledge and informed consent of both parties
Violation of NYS License Law
Agent has breached their fiduciary responsibilities to the client
Disclosure and Informed Consent
When is dual agency permitted in NY?
Written Consent to Dual Agency
Both buyer and seller understand and accept that they will be receiving less than full representation
realize the level of service they will relinquish
Single Licensee Dual Agency
when a real estate licensee tries to represent the seller as a client and the buyer as a client in the same transaction
Broker Dual Agency
occurs when two agents in the broker's firm represent both the seller and the buyer in a single transaction
the parties are represented by two different agents, but the broker is the same
Section 443 of the New York Real Property Law
requires licensees to disclose their agency relationship to their clients using a disclosure form designed specifically for this purpose
Disclosure of Agency Relationship Form
provides a place for both the prospective buyers and the sellers to acknowledge the arrangement and sign the form, thereby giving their informed consent to dual agency
Real Property Law, Section 175.7
a broker may accept a referral fee or other compensation from a party that they do not represent, as long as the broker discloses that fact to all parties and gets their consent
Dual Agency Firms
most firms
Designated Sales Agency
a broker may designate one or more licensees to act exclusively as the agent of the seller/landlord, and designate one or more licensees to act exclusively as the agent of the buyer/tenant in the same transaction
must be disclosed to both parties and broker must obtain written consent from buyer and seller
Broker is dual agent in transaction, but each principal has a designated agent
individual client's interests are protected
Single Agency
the agent can represent only one party (buyer or seller) in a single transaction, NEVER both
owes fiduciary duties to one principal and can provide advice to that client
owes honesty and fair dealing to customer
Seller's Agent
agent enters into an agency agreement with the seller
seller is principal or client
listing agreement is document that creates this
Buyer's Agent
agent enters into an agency agreement with a buyer
also known as buyer brokerage
buyer is principal or client
agent is accountable only to the buyer
exclusive right to represent is document that creates this
Advantages to have a buyer's agent
tailored buyer agreement
access to a larger market
stronger negotiating strategy
Ways buyer's agent can receive compensation
retainer
seller-paid fee
buyer-paid fee
Broker's Agent
an agent that cooperates or is engaged by a listing agent, buyers agent or tenants agent who is engaged to assist the listing agent, buyers agent or tenants agent in locating a property to sell, buy, or lease to the client
does not work for the same firm as the listing agent, buyers agent, or tenants agent
does not have a direct relationship with buyer, seller, or landlord and does not have vicarious liability for the acts of this agent
Agency Relationship Termination
performance
expiration of agreement term
termination of relationship by mutual agreement of the parties
termination of relationship by one party
Involuntary Termination of Agency Relationship
death or incapacity of either party
agent abandonment
condemnation of property
destruction of property by fire, vandalism or natural disaster
renunciation by the client
breach of the contract
bankruptcy
revocation of the agent's license
Subagent
agent of an agent
licensees who work for the listing broker or the selling (cooperating) broker
Tenant's Agent
an agent who contracts to locate residential real property for a tenant or who finds a tenant for a property and presents an offer to lease to the landlord or landlord's agent and negotiates on behalf of the tenant
Landlord's Agent
listing agent who acts alone, or an agent who acts in cooperating with a listing agent, acts as a landlord's subagent or acts as a broker's agent to find or obtain a tenant for residential real property