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| The Real Estate Encyclopedia |
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| What does agency brokerage mean? |
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| Category - Home Ownership FAQ's - Lease & Renting
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If you have been working with a real estate agent to find the property you are ready to lease, you are represented by that agent and a fee may be payable to the brokerage the agent represents.
Agency is a relationship created when one person, the principal (in this case you), delegates to another (the agent or broker you are working with), the right to act on his or her behalf in a business transaction. An agency imposes on the agent, as the representative of the principal, certain duties, obligations and high standards of good faith and loyalty.
An agency can be a general agency, as when a principal (such as the lessor) gives a property manager the power to manage a real estate project, such as a rental property. In this case, the agency exists on a continuing basis. An agency can also be a special agency, such as the standard agreement between a buyer, seller or renter, wherein the agent is employed only to find a property on a one-time basis. |
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