Sellers: Types of Agency Relationships

When it comes to agency relationships, most sellers don’t know exactly what we mean or what their options are. In the state of Georgia, all real estate licensees are required to disclose every type of agency relationship available to prospective clientss at the earliest appropriate time. This is because agency relationships can only be established by a written and signed agreement. Licensees are also required to disclose any relationships they have with other parties that could be a direct conflict of interest with the prospective client and their obligation to keep the prospective client’s information confidential. Lastly this agreement must cover how brokers will be compensated and if they will share the compensation with other brokers involved in the transaction.

Types of agency relationships that exists in the state of Georgia:

1.) Buyer’s Agent: This means that the buyer has chosen to be represented by the broker during the home buying process. Representation is basically the licensee’s use of their judgment and discretion for the benefit of the buyer. They are loyal to the buyer and offer complete confidentiality in locating properties and negotiating a transaction that meets the buyer’s needs.

2.) Seller’s Agent: This means that the seller has chosen to be represented by the broker during the home selling process. Representation is basically the licensee’s use of their judgment and discretion for the benefit of the seller. They are loyal to the seller and offer complete confidentiality in marketing their home and negotiating a transaction that meets the seller’s needs. 

3.) Disclosed Dual Agency: This means that one licensee is representing the buyer and seller in the same transaction. This licensee must act in the best interest of both parties at the same time for the same transaction. Dual Agency is only allowed when both parties have been fully informed and give their written consent.

4.) Designated Agency: This is a type of dual agency because the same company represents both the buyer and seller. However, different licensees represent them each and they are not allowed to disclose any confidential information to each other or any one in the office except the broker. This type of agency requires written consent of each party involved. 

5.) Transaction Broker: This means that neither the buyer nor seller has chosen to be represented by the broker. In this type of relationship, the broker is only allowed to perform ministerial acts for either party. Ministerial acts have been defined as acts that do not require exercise of the licensee’s expertise or judgment. For example, they may prepare and convey offers on a property, but they may not help either party with a recommended price, attorney, inspector, etc. A list of attorneys, inspectors, etc may be provided but the broker may not make any recommendations.