Real Estate Agency

In California a real estate agent must explain agency and have a buyer or seller sign the Disclosure Regarding Real Estate Agency Relationship form (AD) BEFORE executing any purchase or listing contracts. An agent may represent a seller, a buyer, or both parties in a transaction (see my opinion on that practice). If you love “legalese” take a gander at the AD. The party paying the commission to the agent does not necessarily have an agency relationship with the agent. The agent of a principle, buyer or seller, has a Fiduciary duty of utmost care, integrity, honesty and loyalty to their client.