It is important to understand who the agent of the consumer really is. The firm, the brokerage, represented by the designated broker licensee is IF an agency relationship is created. In all contracts the firm is defined as the "broker", never the associate licensee. It is against the law for associate licensees of the broker to contract directly with the consumer for real estate services. All contracts are between the consumer and broker, the firm. The associate licensee is only an authorized signatory for the firm in listing contracts and buyer/broker contracts as an "agent" of the firm. The associate licensee is not the agent of the consumer. They are responsible to perform the duties of the agent, the firm. They are bound to work under the supervision of their broker, the agent. This is the national model of a real estate brokerage. The brokerage is the agent of the seller or buyer IF an agency relationship is established. The associate licensees, with either broker or salesperson licenses, work under an employment agreement making them agents of the brokerage. It is also important to realize an agency representation has never been required by law between a brokerage an a seller or buyer. Honesty and fair dealing are the minimum duties required of licensees and brokerages. Fiduciary agency was offered to sellers as the ?guarantee? the broker would work ?for? the seller and their best interest as the enticement to sign an exclusive right to sell listing agreement committing the seller to compensation for the broker. There are other representation services available. Buyers were not even offered agency representation until recently; they were merely ?customers?. Agency is a voluntary agreement between an agent, currently the brokerage, and a principal.

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