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An agency relationship is created when one person (the principal) consents to another person (the agent) acting on his behalf, subject to the Ps control, and the A agrees to do so. Agency most often comes up in relationship to business matters of some sort. At common law this relationship was called master-servant.
A notice of agency relationship and consent form shall be signed by the licensee and the client at the time the agency relationship is created.
The purpose of the agency disclosure form is to protect the client. Upon signing, there is no contractual obligation to exclusively work with that agent, however, this document does make sure that everyone who hires a real estate agent understands the full scope of their relationship dynamic.
For example, a married person can act as their spouses agent. A personal representative can act as an agent of a dead persons estate. An employee can act as the agent of their employer, forming an employment relationship.
This disclosure will help you to make informed choices about your relationship with the real estate broker and its sales agents. Throughout the transaction you may receive more than one disclosure form. The law may require each agent assisting in the transaction to present you with this disclosure form.
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An agency relationship is created in the following manners: Express Agreement, Implied from the Situation, Estoppel, by Necessity, or Ratified by the Principal.
agency disclosure. a written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction.
Also, the Agency Law Disclosure form needs to be attached as a signed addendum to the buyers purchase agreement offer submitted to the seller. When the sellers broker fails to obtain a signed Agency Law Disclosure as an addendum to the listing, the seller may legally avoid paying their broker their fee.

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