An agency is a relationship created when one person or entity, the customer, delegates to another, the agent, the right to act on the customer’s behalf.
An agency gives rise to a fiduciary relationship. This requires the agent, as the fiduciary of the customer, to honour certain duties, obligations and high standards of good faith and loyalty, professionalism and skill, and integrity.
The agent’s dos
- Exercise transparency and err on side of over-disclosure i.e. eliminate grey around fees
- Avoid or communicate conflicts of interest – rule of thumb: serve the person or entity who is paying your fee
- Honour your position of trust and responsibility – transactions are high in value, carrying significant financial consequences for your customer
- Commercial property is complicated, attempt to educate and inform your customer and eliminate confusion
The agent’s do nots
- Don’t “horse-trade“
- Don’t get undisclosed kick backs
- When tasked with data analysis, don’t provide incomplete information to your customer
- Don’t be incompetent – aim to be responsive, and turn deliverables around fast