What do the laws of agency primarily deal with?

The laws of agency primarily deal with fiduciary relationships, which establish a trust-based connection between agents and their clients. In the context of real estate, this means that an agent has a duty to act in the best interests of their client, ensuring loyalty, confidentiality, and full disclosure. The fiduciary relationship creates a framework wherein the agent must prioritize the client's needs and interests above their own, fostering a sense of trust essential for successful transactions.

Understanding fiduciary duties is crucial for real estate professionals as it outlines their responsibilities and the legal implications of their actions. This encompasses responsibilities such as providing honest advice, fully representing the client’s interests during negotiations, and keeping all confidential information secure. The nature of these duties is what differentiates agency relationships in real estate from other types of business relationships, emphasizing the ethical and legal expectations placed on agents.

While verbal contracts, sales commissions, and property management duties are relevant aspects of real estate, they do not encapsulate the primary focus of agency laws. These elements can fall under the broader umbrella of real estate practice but do not define the core principles that govern agency relationships.