Agency is a fascinating branch of action philosophy involving human co-participation and society: Check Wikipedia
It also occupies a grand facet in commercial law with a set of rules, codes of conduct, and other idiosyncracies: Check Wikipedia
Real Estate Law fits within the ven diagram. A Real Estate Agent offers a lawful relationship of agency.
Rhode Island Real Estate Agency:
It is defined by 4 different types of relationships offered by an agent for a principal or client. These relationships are offered to a client or principal acting as owner, buyer, tenant, or landlord. Those relationships are:
- Neutral Transaction Facilitator - bundle of services, yet neutral
- Owes following duties to you as customer:
- to perform agreed upon ministerial acts timely and competently
- to perform with honesty, good faith, reasonable skill and care
- to properly account for money or property placed in the care and responsibility of the broker.
- Does not owe confidentiality or any other fiduciary duties to a customer.
- Does not represent you and cannot negotiate on your behalf
- Designated Client Representative - Most True Agency with fiduciaries
- Represents and advocates on your behalf
- Owes following duties to you as client:
- to perform the terms of the client representation contract, if any & ministerial acts timely and competently
- to perform with reasonable skill and care
- promote clients' best interest in good faith and honesty
- to properly account for money or property placed in the care and responsibility of the broker.
- Owes protection of confidential information during the relationship and after its termination
- Only that agent represents you and not the other agents of the same office, although they do owe you confidentiality.
- Neutral Dual Facilitator - Agent working for two parties without conflict of interest - must be agreed upon in writing by both parties
- Exists solely for the sake of a specific transaction.
- Must be neutral as to any conflict of interest
- Owes the following duties to all parties:
- protection confidential information of you and the other party except where disclosure is needed or permitted
- accounting for funds.
- Cannot satisfy these duties to both parties
- loyalty, full disclosure, reasonable care, and obedience to lawful instructions.
- Neutral Transaction Coordinator - between affiliated agents
- One represents one side of the transaction, the other represents the other side of the transaction -- same office
- Duties required are:
- protection of confidential information
- to property account for money placed in agents' care.
Licensee's Responsibilities: Licensee must present this form to you at first meeting, or before an offer to purchase or rent is made, whichever comes first. Licensee's must disclosure preexisting relationships with pertinent parties, and obtain written acknowledgement of such relationships. The law also requires the licensee to fullfill the duties of their relationship with you as defined by law or in a written contract. Failure can result in disciplinary action to the licensee.
Consumer Information & Responsibilities: RI law presumes that a licensee is acting as a Neutral Transaction Facilitator unless otherwise stated on the form. Brokers can only appoint a licensee to represent you as Designated Client Representative with your informed and written consent acknowledged on the disclosure form. Protect your own interest.
Note: These agency relationships can be terminated at any time through agreement. You, the client, are the principal and in charge.
Find the Rhode Island Mandatory Real Estate Relationship Disclosure Form ATTACHED at the bottom of this page
