There are three possible types of agency relationships.

They are:

1. Seller's Agent/Listing Agent
2. Buyer's Agent
3. Dual Agent/Cooperating Dual Agent

Each carries with it legal duties and responsibilities on the part of the broker/salesperson as well as the seller and buyer.

Seller's Agent/Listing Agent
A seller's agent acts solely on behalf of the seller. A seller's agent has fiduciary duties to the seller which include reasonable care, undivided loyalty, confidentiality and full disclosure.

Seller's agents often work with the buyers, but do not represent the buyer. However, in working with a buyer, a seller's agent must act honestly and fairly. A seller's agent must also disclose all information material to any transaction which is known by the broker.

Dual Agent
Dual agency occurs when a real estate firm representing the buyer shows the buyer properties where the firm has also agreed to be the agent of the seller. A real estate firm can be the agent of both the buyer and seller in a transaction with the knowledge and written consent of the buyer and seller.

A real estate firm acting as a dual agent must carefully explain to both buyer and seller that they are representing both parties and that their fiduciary duties are different if they represent both parties.

When representing both the buyer and the seller, the agent must have the express permission of the respective party in order to disclose confidential information to the other party, such as price, terms and motivation to sell or buy.