What is the "law of agency"?

The law of agency refers to the legal concept governing the relationship between agents and their clients. In real estate, this relationship is crucial as it dictates the duties and responsibilities that agents owe to their clients. An agent acts on behalf of the client, facilitating transactions and representing their interests in dealings with third parties. This law ensures that the agent must act in the best interest of the client, maintain confidentiality, and provide full disclosure regarding any material facts that affect the client's position.

Understanding the law of agency is fundamental for real estate professionals to navigate the complexities of transactions ethically and legally. It establishes the framework for trust and transparency in the agent-client interaction, ensuring that both parties have clear expectations. This concept is vital for maintaining professional accountability and protecting clients' rights in real estate dealings.