California · Chapter 11 of 59

Agency Relationships and Types

Definition of agency, types of agents (universal, general, special), and single vs. dual agency.

25-minute read · Built for the DRE Salesperson Exam

agencyprincipalagentfiduciaryuniversal agentgeneral agentspecial agentdual agencysingle agencydesignated agency

What Is Agency

Agency is a fiduciary relationship where one party (the agent) acts on behalf of another (the principal) with the principal's consent. In real estate, the licensee is the agent and the client is the principal. The agent owes fiduciary duties to the principal that are higher than duties owed to any other party in the transaction. Agency exists independently of compensation. You can be an agent even if you are not being paid, and you can be paid without being an agent (as a finder, for example).

B&P Code §10131, Civil Code §2297

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