New York · Chapter 02 of 26
Law of Agency: Relationships and Fiduciary Duties
What agency is, clients vs. customers, the six fiduciary duties, how agency is created and ended, subagents, broker's agents, buyer agency, vicarious liability and antitrust.
45-minute read · Built for the Salesperson Exam
Agency Basics: Principal, Agent, Client and Customer
Agency is a fiduciary relationship in which one person, the agent, is authorized to act for another, the principal. In real estate the principal is the client: the seller, buyer, landlord or tenant the broker represents. A customer is a third party the agent deals with but does not represent. The agency belongs to the broker; a salesperson acts as an agent of the broker and, through the broker, owes the broker's client the same duties. New York's disclosure form defines an agent as a licensee 'acting in a fiduciary capacity.' A listing broker is usually a special agent, authorized for one transaction, while a property manager with broad authority is a general agent. A power of attorney creates a universal or general agency, depending on its scope.
N.Y. Real Prop. Law §443(1)
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