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Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.

Agency Relationships

Agency relationships in real estate are fiduciary connections created by agreement or law in which a broker or sales associate represents a client's interests in a transaction, with duties that differ from the honest-dealing owed to customers.

Exam context

Vignettes ask who owes fiduciary duties to whom at an open house, after a buyer signs a representation agreement, or when one firm represents both parties. Match duty level to relationship type before choosing an answer.

How relationships start and end

Written buyer or seller representation agreements are standard in many states. Agency can also arise from conduct in limited circumstances, which is why disclosure forms matter at first substantive contact. Relationships end at closing, expiration, mutual termination, or completion of the agreed task.

Client, customer, and dual roles

Clients receive fiduciary loyalty, confidentiality, obedience to lawful instructions, reasonable care, disclosure, and accounting. Customers receive honest dealing and required disclosures but not full fiduciary loyalty. Dual agency requires informed written consent where allowed, and some states mandate designated agency within the same firm instead.

Examples

  • Buyer representation signed

    After a buyer brokerage agreement is executed, the buyer is a client. The agent must prioritize the buyer's interests in price and negotiation strategy.

  • Seller's listing agent and walk-in buyer

    The listing agent's fiduciary duty runs to the seller. The unrepresented visitor is typically a customer entitled to honest answers about material facts but not advocacy against the seller.

Keep studying

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