Concepts Definitions
Principal: The client or employer of a broker or agent to whom the agent owes duties.
Fiduciary Duty: A legal obligation to act in a position of trust and confidence, requiring loyalty, honesty, good faith, and the client’s best interests above all others.
Cooperating Agent/Broker: A licensee who finds a buyer for a property listed by another agent.
Subagency: An agency relationship created when one agent (the subagent) is authorized to act on behalf of another agent (the original agent) to represent the principal.
Agency Relationship: The association between a principal and an agent, which can be formed by agreement, estoppel, or ratification, establishing duties and responsibilities.
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