Agency Relationships

This page is provided as a resource to help consumers better understand consumer/agency relationships. The philosophy of RE/MAX Real Estate Group, and that of its agents, is that full disclosure of all possible relationships and the informed consent of all parties is required in every transaction.

Please read the PA Consumer Notice , as it contains important information regarding consumer/agency relationships.

Agency Overview

In order to meet the needs of consumers and provide the most choices, RE/MAX Real Estate Group offers a broad range of working relationships. Both agency and non-agency relationships are available. Agency representation is available to both buyers and sellers, and the company recommends that both buyers and sellers have agency representation during a transaction. Depending on relationships and circumstances, RE/MAX Real Estate Group may function as a single agent (representing only the buyer or seller), a subagent, a disclosed dual agent, or a transaction licensee. In addition, in order to maximize and provide personalized service to individual sellers and buyers, RE/MAX Real Estate Group practices designated agency. Under this concept, RE/MAX Real Estate Group and the consumer being represented (buyer or seller) may designate one or more individual licensees (salespersons and associate brokers) to represent the interests of the consumers as their exclusive agent. When either a buyer or seller enters into an agency relationship with RE/MAX Select Realty, the company may, with the written consent of the principal, designate one or more licensees employed by the company to serve as the agent(s) of the buyer or seller to the exclusion of all other licensees employed by the company. When a represented buyer becomes interested in a property owned by a represented seller the broker buy generally not the licensees of the broker will act as a disclosed dual agent. Should a licensee designated to represent the seller and buyer be one and the same then the licensee will also act in the capacity of a disclosed dual agent. This working relationship will only be entered into with the written informed consent of all parties.

Agency Representation Agreement

RE/MAX Real Estate Group will represent consumers and act as their agent only when the consumer has entered into a written agency representation agreement. Without a written agency agreement between the parties, RE/MAX Real Estate Group may function as a transaction licensee. A written disclosure form and acknowledgement of the licensee's duties will be required prior to the licensee providing services to the consumer as a transaction licensee. A transaction licensee is not an agent or advocate for the consumer and provides a limited range of services. A transaction licensee owes no fiduciary duties to the consumer, and no agency relationship exists between the parties.

Seller Agent

Any licensee who has entered into an agency relationship with a seller of real estate. The seller agent is the licensed broker who enters into a listing contract with a seller of property, as well as all licensees affiliated with that broker. Please Note that if designated agency applies, this definition will be modified (see designated agent).

Buyer Agent

Any licensee who has entered into an agency relationship with a consumer buyer of real estate. The buyer agent is the licensed broker who enters into a written buyer agency contract with a buyer prospect as well as all licensees affiliated with that broker. Please note that if designated agency applies, this definition will be modified (see designated agent).

Dual Agent

A licensee who acts as an agent for the buyer and seller in the same transaction. The dual agent is the licensed broker and all licensees affiliated with the broker who by written agreement represent both parties (buyer and seller) in the same transaction. Please note that if designated agency applies, this definition may be modified (see designated agent). A licensee may act as a dual agent only with the written consent of both parties following disclosure given at the initial interview.

Designated Agent

One or more licensees designated by the employing broker with the consent of the principal to act exclusively as an agent or agents on behalf of the principal to the exclusion of all other licensees within the brokers employ. Only the broker and the designated licensees will represent the consumer. No other licensees affiliated with the broker will represent, or owe fiduciary duties to the consumer if designated agency is the relationship agreed to by the parties. The designation may take place at the time the parties enter into a written agreement, but may occur at a later time.

Subagent

A cooperating broker who is engaged to act on behalf of the listing broker in selling property as an agent of the seller. A subagent is deemed to have an agency relationship with the seller. The buyer is not represented. Subagency may not always be offered by the seller.

Transaction Licensee

A licensed broker or salesperson who provides communication or document preparation services or performs acts described under the definition of "broker" or "salesperson" for which a license is required without being an agent or advocate of the consumer.
Real Estate License and Registration Act

The Real Estate License and Registration Act imposes certain duties on all licensees. A licensee owes to all consumers to whom the licensee renders real estate services to following duties that may not be waived: