What defines an agent in real estate?

The definition of an agent in real estate centers around the relationship they establish with their clients. An agent is specifically a person who is licensed to represent another party in business transactions, particularly in real estate dealings. This representation includes seeking out buyers or sellers, negotiating terms, and facilitating communication and documentation throughout the transaction process. The agent owes fiduciary duties to their clients, including loyalty, confidentiality, and full disclosure, which are fundamental aspects of this relationship.

While maintaining property, regulatory authorities, and financing are all components of real estate transactions, they do not encapsulate the role of an agent. The agent's primary function is to act on behalf of their clients, utilizing their expertise and licensing to navigate the complexities of real estate deals effectively. This distinction is crucial for understanding the Agency Law where the roles and responsibilities of agents and their clients are legally defined.