The Agency: Agency Relationship in Real Estate
An agency relationship is established when a principal (client) hires an agent (along with a broker) to find a willing, able, and ready client (buyer, seller, tenant, landlord). This relationship is governed by the fiduciary duties of trust, confidentiality, and good faith. Principal (client) hires an agent (broker) to find a ready, willing, and able client (buyer, seller, tenant, landlord).