Specific laws and duties govern the relationship between a person looking to buy or sell real property and their real estate agent/broker. Only an agent can act on behalf of the party to negotiate the contract for the purchase or sale of the property. Of course, lawyers can do this too as long as they do not charge a commission but instead bill hourly. The person who engages the broker to act on their behalf is called the “principal”, while the actor is called the “agent.”
An agency relationship forms when the principal authorizes the agent to act on their behalf. An agency can only form when there is evidence (like a written contract) that the principal intended to designate the actor as his agent. The agency is based on the trust and confidence that the principal puts in the agent, and the principal cannot be bound to the relationship if he does not have trust and confidence in the agent.
An agency establishes a fiduciary relationship between the parties, which means that the agent owes a duty to their principal to act in the principal’s best interest. The agent must be diligent and faithful in her service to the principal, and her conduct is held to a high standard of good faith.
Our attorneys have a great deal of experience with issues related to agency relationships and the purchase and sale of real property. To schedule a consultation with an attorney at Schorr Law, please do not hesitate to contact us by giving us a call at (310) 954-1877, sending us a message by using our