Chapter 16: Representation

Representation 

Relationship between agent and principal can be grouped under 2 categories: 

1. Single Representation - agent represents only the principal. Co-operative brokerage works with another party.
2. Multiple Representation - brokerage represents 2 or more parties at the same transaction. 

-Each person entering into a written representation agreement must immediately receive a copy.

-Single representation agreement can be written, oral or implied. The Code of Ethics doesn't req. a signature, but registrants must be aware of risks.

REBBA Compliance 

-Registrants must not represent more than one client unless all parties gave informed, written consent. Brokerage must inform that it represents more than 1 client and outline difference in obligations compare to single representation.

Concurrent representation - brokerage representing 2 clients at the same time.

Sub-Agency - involves authorization by 1 brokerage to another brokerage to assist in advancing the interests of the principal, with the consent of the principal. The sub agent owes all of the same obligations to the principal as does the agent.