Agency
What is an Agency in Real Estate and Mortgages?
An agency is a legal relationship between a principal and an agent created by a contract in which the principal engages the agent to perform certain acts on the principal’s behalf. Agencies are typically created in one of four ways:
- Expressed agency
- Implied agency
- Agency by estoppel
- Agency by necessity.
Real estate listing agreements and mortgage brokerage agreements are the most common type of contracts that create agency relationships. When a property owner lists a property with a broker, they create an agency agreement with the broker — as well as the agents who work for that broker.
However, homeowners and homebuyers who use mortgage brokers may not necessarily be creating an agency relationship with that mortgage broker. Many brokers are, in fact, officially acting as agents for the lender—not the borrower.
For more information, see also the following entries:
- :Absentee Landlord:
- :Agency:
- :Agency By Estoppel:
- :Brokerage Agreement:
- :Buyer’s Broker:
- :Contract:
- :Expressed Agency:
- :Fiduciary:
- :Implied Agency:
- :Landlord:
- :Listing Agreement:
- :Mortgage Broker:
- :Mortgage Loan:
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roperty: - roperty Management:
- :Real Estate:
- :Real Estate Agent:
- :Real Estate Broker:
- :Real Estate Contract:
- :Real Property: