What is the primary purpose of an agency relationship in real estate?

The primary purpose of an agency relationship in real estate is to facilitate property transactions. An agency relationship is established when one party (the agent) is authorized to act on behalf of another party (the principal) in dealings with third parties. This relationship is crucial as it allows the agent to negotiate, market, and complete transactions, ensuring that the needs and interests of the principal are met throughout the process.

In real estate, this means that the agent has a duty to promote the sale or purchase of the property effectively, guiding clients through the complexity of the market, paperwork, and legal requirements. The agency relationship creates trust and accountability, which are essential for successful real estate transactions.

While legal representation, property management, and investment advice may involve aspects of agency relationships, the core function is centered around facilitating transactions. This focus underscores the importance of the agent's role in bringing buyers and sellers together to achieve a successful outcome.