Concept of agency

Question 1

Clients

Answer 1

• Who we act on behalf of
• Client pays commission to the agent
• Owner of property

Question 2

Customers

Answer 2

• Buyers/tenants
• Agent finds customers for clients
• Individual or company
• Happy customers = happy clients

Question 3

Agent to client relationship

Answer 3

• We owe our loyalty to clients as they are the ones paying us commission
• We sign a ‘form 6’ contract with the client
• We owe our clients fiduciary duties

Question 4

Agent to customer relationship

Answer 4

• We must be fair and honest with a customer

- We must not exaggerate, mislead or deceive

Question 5

Why can there only be one client in a transaction?

Answer 5

• We can’t be paid by both the buyer and seller

- We must represent one of the parties and be paid by them

Question 6

Form 6

Answer 6

-Contract with client

Question 7

Contractual duties

Answer 7

-Stated in form 6 which the client has read and signed