The relationship between a real estate agent and the parties involved in a transaction is not exactly simple.

If you've ever viewed property with a licensed Realtor, you should have been presented with a form entitled "Understanding Whom Real Estate Agents Represent." This form is required to be presented by the Realtor "at the time of the first scheduled face-to-face contact." The law of agency defines the rights and duties of all parties that are involved in a real estate transaction.

The Understanding Agency form in the state of Maryland defines the following distinctions in agency representation:

Agents Who Represent the Seller:

• Seller's Agent: A seller's agent works for the real estate company that lists and markets the property for the sellers and exclusively represents the sellers. That means that the Seller's agent may assist the buyer in purchasing the property, but his or her duty of loyalty is only to the sellers.

• Cooperating Agent: A cooperating agent works for a real estate company different from the company for which the seller's agent works. The cooperating agent can assist a buyer in purchasing a property, but his or her duty of loyalty is only to the sellers. The form clearly states to the consumer, "If you are viewing a property listed by the company with whom the agent accompanying you is affiliated, and you have not signed a “Consent for Dual Agency" form, that agent is representing the seller. "

Agents Who Represent the Buyer:

• Presumed Buyer's Agent (no written agreement): When a person goes to a real estate agent for assistance in finding a home to purchase, the agent is presumed to be representing the buyer and can show the buyer properties that are not listed by the agent’s real estate company. A presumed buyer's agent may not make or prepare an offer or negotiate a sale for the buyer. The buyer does not have an obligation to pay anything to the presumed agent. If for any reason the buyer does not want the agent to represent him or her as a presumed agent, either initially or at any time, the buyer can decline or terminate a presumed agency relationship simply by saying so.

• Buyer's Agent (by written agreement): A buyer may enter into a written contract with a real estate agent which provides that the agent will represent the buyer in locating a property to buy. The agent is then known as the buyer’s agent. That agent assists the buyer in evaluating properties and preparing offers, and negotiates in the best interests of the buyer. The agent’s fee is paid according to the written agreement between the agent and the buyer. If you as a buyer wish to have an agent represent you, you must enter into a written buyer agency agreement before a contract offer can be prepared.

• Dual Agents: The possibility of dual agency arises when the buyer's agent and the seller's agent both work for the same real estate company, and the buyer is interested in property listed by that company. The real estate broker or the broker’s designee is called the "dual agent." Dual agents do not act exclusively in the interests of either the seller or buyer, and therefore cannot give undivided loyalty to either party. There may be a conflict of interest because the interests of the seller and buyer may be different or adverse.

Lauren Bunting is a licensed realtor with Bunting Realty, Inc. serving Worcester and Wicomico counties.

Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.