In Mark Twain’s novel, A Tramp Abroad, in a humorous reference to agency,the narrator says: “I lay abed and read and rested from my journey’s fatigues the remainder of that Sunday, but I sent my agent to represent me at the afternoon service, for I never allow anything to interfere with my habit of attending church twice every Sunday.” Black’s Law Dictionary (Sixth Edition) defines an agent as: “A person authorized by another (principal) to act for or in place of him.” While few people would authorize an agent to worship on their behalf, many retain an agent to represent them in a real estate transaction.”

The concept of agency originated in Roman law and was developed in the English Common Law. In Rome, a slave, having no legal standing of his or her own, was considered to be an extension of his or her master. When a real estate agent offers to serve you, he or she is offering to be your eyes, ears and hands. In handling your transaction and seeing it through, an agent will be acting on your behalf. In order to establish an agency relationship, in Vermont and New Hampshire, as in most states, it is necessary to sign a right to represent agreement. Only a licensed person may serve as a real estate agent.

An agent owes his or her principal (client) special duties which include obedience to lawful orders within the scope of the agency relationship, disclosure of all relevant information, protection of confidential information, reasonable care and diligence, accountability, and loyalty to the client’s best interests to the exclusion of all other interests, including the agent’s own self-interest. A real estate agency which represents both buyers and sellers must have an office policy defining how that firm will handle a transaction in which a buyer they are representing becomes interested in purchasing a property whose owner is also represented by that agency. In all cases, a real estate agent must disclose, in writing, whom he or she is representing so that there will be no misunderstanding.

In a particular transaction, a real estate agent may represent the seller, or the buyer. Traditionally both agents — even the agent driving the buyer around to see houses — represented the seller, and the buyer was unrepresented. These days, most agencies offer buyer representation. Although there are two sides to a real estate transaction, it is not adversarial: The buyer and seller both succeed if the deal closes. When each side has professional representation, both parties are able to move forward with increased confidence. In the end, having an agent on the side of the buyer and another agent on the side of the seller is a sound practice, making for a solid transaction.