Short version is:

A relationship created when one person, the principal, delegates to another, the agent, the right to act on his or her behalf in business transactions and to exercise some degree of discretion while so acting. An Agency gives rise to a fiduciary or statutory relationship and imposes on the agent, as the representative of the principal, certain duties, obligations, and high standards of good faith and loyalty. Common and statutory law controls the rights and duties of principal and agent.

In real estate transactions, the broker who represents the seller is called the listing agent and includes the associate licensees working for the broker; the broker who works with the buyer is called a selling agent; sometimes the broker is representing both the seller and the buyer, in this case the broker and any of his associate licensees are called a dual agent.

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Posted in: Agency