Inc. Mr. Seher is an attorney and real estate broker. Conclusion Introduction Real Estate brokers have traditionally acted as the agent of either a seller, or buyer, or both. An agent is usually defined as a person one who represents another person, called a principal, in dealings with third persons. The legal rules which govern agency are simple in concept, but have often proved difficult to apply. Common law developed in England primarily from judicial decisions based on the long term benefit of society.
Common law adapts as the community and society changes.
Generally speaking, the common law is in force except as specifically modified by statute or by a state's constitution. Most states have also adopted special laws, rules, and regulations affecting professionals engaged in real estate sales and brokerage. These rules and regulations impose special requirements on the agency relationship in the real estate context. They have the effect of limiting, redefining and superseding the common and statutory laws which would otherwise apply in non-real estate situations. Further adding to the complexity of the laws governing agency in the context of real estate transactions, is the written agreement between the broker and his principal.