What are the Different Agency Relationships?
Introduction:
In the world of real estate, the relationship between a client and their real estate agent can vary greatly, and it's essential to understand the different agency relationship types available to you, the consumer. Maine allows three types of agency relationships; single agency, appointed agency, and dual agency. In this article, we will explore the differences to help you make an informed decision on which type of agency relationship you would prefer to enter into.
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SINGLE AGENCY: The company and any affiliated licensees represent you as a client. These type of agencies involve companies with a very limited number of agents. Whatever you share with one agent can be shared with any other agent within the office as they all have fiduciary duties to you. In Single Agency, the agent would not be allowed to show you listings that they have "in-house" without your expressed written consent because everyone in that office already has a presumed client relationship with the seller.
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DUAL AGENCY: In certain situations a licensee may act as an agent for and represent both the buyer and the seller in the same transaction. Some customers and agencies might consider this a serious conflict of interest. This is called disclosed dual agency. Both the buyer and the seller must consent to this type of limited representation in writing. Working with a dual agent is not the same as having your own exclusive agent as a single or appointed agent.
3. APPOINTED AGENCY: In this type of agency relationship, the company appoints, with your written consent, one or more of the affiliated licensee(s) to represent your interests. Don't let the name fool you, you have a choice in which agent you would be working with. In this scenario, the company can represent competing parties in a transaction, however the Buyer and the Seller would each have their own "Appointed Agent" working exclusively for them.
Conclusion:
Real Estate Agents in Maine are required to provide a disclosure called the Maine Brokerage Relationship Form (See Sample Below) to prospective buyers and sellers upon first substantive communication which gives a brief overview of the agency relationship options available to you. Ultimately, the type of agency relationship that provides the deepest level of client services is the one that aligns most closely with your unique real estate goals and priorities. In your process of making an informed decision, be sure to ask the important questions: What are the advantages and disadvantages of each type or relationship? Are you working exclusively for me? What if I choose not to have representation? With proper understanding and professional guidance, your real estate experience is far more likely to be a pleasurable one.
Maine Brokerage Relationship Form Sample.pdf
