It is a relationship between a principal and their agent where it is deemed to be a fiduciary relationship. This is the typical relationship that exists between a homeowner and a real estate professional. Each side has various responsibilities in this type of relationship. The agent’s responsibilities include the following:
- Full Disclosure and Good Faith to the Principal
- Confidentiality
- Full and complete Accounting
- Competence
- Loyalty
- Obedience
On the other side of the relationship, the principal owes the following:
- Indemnification
- Remuneration
This is the very foundation of the agency relationship that exists between a seller/buyer and a real estate salesperson and broker.
