Recent article distributed by the Arkansas REALTORS Association by Andrea Alford, Deputy Executive Director of the Arkansas Real Estate Commission.
In the real estate business, the concept of agency representation, or who represents whom in a real estate transaction, is often misunderstood. In 1978, the FTC did a study that showed most consumers had no idea if the agent they worked with represented them, the opposite party, or both. To make matters worse, many real estate agents themselves were unclear about which party was entitled to their absolute loyalty as agents. This study prompted real estate practitioners, regulators and educators to work toward establishing a greater understanding of agency representation. Among consumers and practitioners alike, awareness of this concept seems to have improved in recent years. Nonetheless, it is a topic that always bears revisiting.