However, compensation does not apply to matters arising from the premeditation or negligence of the sub-agent. Although the FONASBA Standard Liner Agency agreement contains a similar clause requiring the line manager to compensate the agent, most agreements developed by the line companies or their lawyers do not contain such a provision. It is therefore important that officers try to negotiate the inclusion of such a clause when they are appointed first by a new line leader. Until the early 1990s, the broker offered a conventional full-service brokerage relationship under a listing agreement signed with a single vendor, creating an agency relationship with fair common law bonds in most of the United States and Canada. The seller was then a client of the real estate agent. [3] In a subposition, the real estate agent who brings the buyer actually works for the seller as a sub-agent of the listing broker. This is important because the broker working with the buyer owes fiduciary duties to the seller, not to the buyer. Real estate laws are specific to the state and there are pockets with different statutes and practices. In some areas, lawyers continue to do business, for example. However, most of the following describes how the practice currently works in many countries.

All of this is wonderful until you sign a contract through a purchasing agency and end up drafting a sales contract for that buyer on your own or on your company`s list, in which you have also signed an agency representation contract. Now your business is suddenly an “agent” for both sponsors in the transaction. Obviously, this is a problem, because you can no longer meet the requirements to keep all your information private and reveal everything you know at the same time. An example would be a divorce situation of the seller. If you are your agent, you will not reveal it, but if you were the buyer`s agent and you had no relationship with the seller, you would give this information to your buyers to help them eventually make a better offer. If you`re a double agent, you can`t either. You must therefore let both parties know that your new status has changed your ability to serve them. Dual Agency is not possible, but it is a term used in most states. It is impossible to grant two clients complete confidentiality AND full disclosure at the same time. However, the term applies to the representation of the buyer and seller if you are in agency status.

It requires careful disclosure to both clients that your ability to present them aggressively has changed. It is considered by many to be a risky practice, with potential conflicts of interest. Under different names, transaction mediation, mediator, non-agency are all representations without agency agents. They are fair to all parties involved, but do not facilitate freedom of choice. Subagency has existed since the beginning of the organized practice of real estate.