Terms related to Sellers Agents / Seller Agency

  • Real estate broker – Any person who for fee, commission or other valuable consideration, or with the intention or with the expectation of upon the promise of receiving or collecting a fee, commission or other valuable consideration, does any of the following:- sell, exchange, purchases, rents or leases, or negotiates, or offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or leasing of any real estate, or lists or offers, attempts or agrees to list any real estate, or buys or offers to buy, sells or offers to sell or otherwise deals in options on real estate, or advertises or holds himself out as engaged in the business of selling, exchanging, purchasing, renting or leasing real estate, or assists or directs in the procuring of prospects or the negotiation or completion of any agreement or transaction which results or is intended to result in the sale, exchange, purchase, leasing or renting of any real estate.

  • Real estate agent – Also referred to as a real estate salesperson. A generic term pointing to a person licensed by a state who holds either a real estate broker or real estate salesperson license who assists people to buy, sell, rent or lease, manage, finance or value real estate for some type of anticipated compensation.

  • Listing – A contract by which a party employs a licensed real estate broker to assist them in a real estate transaction which usually refers to the sale of property.

  • Listing contract – 1. An employment contract between an owner and a licensed real estate broker entered into for the purpose of the broker providing services to find ready, willing and able persons to buy, rent or lease a particular property under the terms specified in the contract for an identified period of time and where the owner agrees to pay certain identified compensation. In addition, it usually authorizes the broker to be the agent of the owner/principal and to perform services for the principal in a fiduciary capacity involving the principal’s identified property. 2. The employment of a licensed real estate broker by a prospective purchaser or lessee to locate property to purchase or lease can also broadly be considered a type of listing.

  • Client – Also referred to as a principal. A person who empowers another to act as his or her representative or Agent. Client relationship = fiduciary relationship.

  • Principal – Also referred to as a client. Commonly known as person who engages an agent for representation.

  • Agent – One who has been authorized to act for a party known as the principal/client.

  • Agency – An expressed contractual relationship which can be created in writing or orally in which a principal authorizes and empowers the agent to act on behalf of the principal in dealing with third parties and further agrees to accept full liability for the agents acts.

  • Agency disclosure – A written declaration signed by a prospective buyer or seller informing that party of the role that the broker is playing in a specific transaction. The purpose of disclosure is to explain whether the broker represents the buyer or seller or is a dual agent (representing both) or a subagent (an agent of the seller’s broker). This allows the customer to understand to which party the broker owes loyalty. Take a moment to review our "Agency Disclosure" ( PDF Format). For more information, please ask Gordon!

  • Seller’s Agent - Also referred to as the Listing Agent. The real estate agent/broker who has obtained a signed listing contract from an owner/seller.

  • Agreement of sale – A written agreement or contract between a buyer and a seller in which they reach a “meeting of minds” whereby the purchaser agrees to buy specific real estate and the seller agrees to sell upon specific terms and conditions set forth in the contract.

  • Buyer’s Agent – Also referred to as the Selling Agent. Do not confuse a selling agent with the seller’s agent. A real estate broker or salesperson who represents a prospective purchaser or tenant in a real estate transaction and who owes the buyer/tenant/principal common-law or statutory agency duties.

  • Buyer-agency agreement – A principal-agent relationship in which the broker is the agent for the buyer and owing fiduciary responsibilities to the buyer/principal under the law of agency.

  • Dual Agent – A real estate licensee who represents both parties a real estate transaction as an agent. When the dual agency is disclosed it can be legal in many states but when is has not been disclosed, it is illegal in all states.


2. Types of Agency

  • Seller Agency – Also referred to as Sellers Agency. Real estate agent who represents a seller in a real estate transaction as a client and who treats buyers as customers.

  • Sub Agency – A situation where a seller client expressly or implicitly authorizes the real estate broker to share the listing with other real estate licensees to help market the seller's property and where they also act as an agent for the seller.

  • Buyer Agency – Real estate agent who represents a buyer in a real estate transaction as a client and treats sellers as customers.

  • Exclusive Agency – Real estate agent who represents a client as his or her agent for a specified time period.

  • Exclusive Right to Represent – Agreement between a seller or a buyer client and a broker granting the broker the exclusive right to represent the seller or the buyer client as an agent. Agent is entitled to compensation regardless of who completes transaction during the period of agreement.

  • Single Agency – Real estate agent who represents either the buyer or the seller as a client in a real estate transaction and never both.

  • Dual Agency – A real estate broker or licensee who represents both the seller and the buyer in a real estate transaction and where full fiduciary duties cannot be fulfilled to either. When it has the informed consent of both the buyer and the seller is know as disclosed dual agent and is legal in many states but without informed consent, it is illegal in all states.

3. Seller Agent's Obligations to the Client

  • Loyalty – The Seller’s Agent must always act in best interest of client and never in the best interest of the licensee.

  • Obedience – The Seller’s Agent must carry out all lawful instructions of client.

  • Disclosure – of all material facts which would have an affect on the decision making process.

  • Accountability – The Seller’s Agent must protect and account for all money, documents, valuables or other personal property given to him/her by anyone.

  • Confidentiality – Duty to keep the client's information and/or discussions confidential and which survives the termination of the agency relationship. Duty does not apply to legally required disclosures involving known physical hazardous conditions of property.

  • Reasonable Skill, Care and Due Diligence – The Seller’s Agent must act in a reasonably capable and competent manner in performing the duties and requirements of a licensee.

4. Termination of a Sellers Agent (the Seller Agency Relationship)

  • Completion or performance under the agreement.
  • Death or insanity of agent or client/principal.
  • Expiration of agreement.
  • Mutual agreement to terminate or rescission.
  • Impossibility of performance (for example the destruction of the property)
  • Incapacity (for example mentally incapable) or bankruptcy of a principal.
  • Repudiation – Either client/principal or agent withdraws consent, court may deem this a breach of fiduciary obligation and breaching party may be held liable for damages.