An introduction to the new Law of Agency Real Estate Continuing Education course requirement offered free for a limited time at REEDC.
At the core of the real estate licensee’s relationship with clients and customers is an understanding of the agency relationship that exists between the parties to the real estate transaction and the rights and responsibilities that it creates.
Understanding the difference between the client (or principal) and the customer, and knowing the obligations and commitments to each is fundamental to providing professional services.
A Client (or principal) is the party who hires or engages the agent to act on their behalf in all matters relating to the agency relationship. The agent therefore is working “for” the client and has a fiduciary duty of loyalty and fidelity to the client.
A Customer is the party whom the agent brings to the client. The agent’s prescription for loyalty still remains with the client, and owes the customer honesty and fairness and has a duty to disclose any known physical defects to the customer. Therefore the agent is working “with” the customer and working “for” the client.
All parties to the agency must be fully informed and understand their role if the transaction is to progress smoothly and without ambiguity.
Sometimes these roles become clouded when the agent is engaged by both the seller and buyer (or landlord and tenant). This is known as a Dual Agency. The fiduciary commitments may become unclear when representing both parties in the same transaction. Many pitfalls may occur when the agent does not disclose each parties’ rights and responsibilities. Legal ramifications may obstruct or prevent timely closing of the real estate transaction when parties are not fully informed of the nature of their agency relationship.
For this reason, the NY Department of State (DOS) has mandated that, effective January 1, 2017, licensees with two or more years of licensure must complete 1 hour of Law of Agency as part of their 22.5 hour continuing education requirement, (2 hours of Law of Agency if licensee is within first 2-year licensure term).
Licensees must now review law of agency rules upon every two years of license renewal.
In compliance with this requirement, the Real Estate Education Center is offering its Agency and the Advance Disclosure Option seminar for free for a limited time. Currently our free class dates run through May 2017. To learn more about the free course, register here.
This Department of State-approved 3.75 course will fulfill the State-mandated Law of Agency requirements and provide a framework on which you will gain a complete understanding of agency regulations to assist you in facilitating the real estate transaction.