What governs the duties and obligations of agents and principals in a real estate transaction?

The law of agency governs the duties and obligations of agents and principals in a real estate transaction. This legal framework establishes the relationship between agents, who represent clients in real estate matters, and their principals, who are the clients themselves. It defines how agents must act on behalf of their principals, including duties such as loyalty, confidentiality, disclosure, and accounting.

In real estate transactions, the law of agency ensures that agents have a clear understanding of their responsibilities and the level of authority they possess when dealing with buyers, sellers, and other parties in the transaction. This law also outlines the expectations regarding communication and the ethical conduct required to maintain trust within the client-agent relationship. Understanding these principles is essential for agents to effectively represent their clients and navigate the complexities of real estate dealings.

Other aspects like contract law and consumer protection law are certainly important, but they serve different functions. Contract law deals with the formation and enforcement of agreements, while consumer protection law focuses on safeguarding buyers and sellers from unfair practices in the marketplace. Property law pertains to the rights and interests in real estate but does not directly govern the agent-principal relationships in the same way that agency law does.