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A New Law for the People

4. What Is Agency, Anyway? ®

We knew Linda prior to using her as our Realtor , and now we have a business professional and friend to recommend to others. Linda is easy to work with, upbeat, knowledgeable, and has a great positive attitude. She is always calm, levelheaded, and never in a rush to make a decision. —Emma and Victor DelFrate

An Obligation Conferred

F

irst of all, it is important to understand agency. It’s easy to banter about words like sub-agency and real estate agency, but the fact of the matter is that agency is a legal term. Its use confers a legal obligation and some legal liability. Although agency is the preferred relationship in much of the country, in New Mexico, new laws have been passed that allow the real estate broker and the client or customer to choose an agency relationship or a transaction brokerage relationship (which we will discuss in more detail later in this chapter). It is still important to understand what agency means. When we mention agency here (in all its forms), we simply want you to understand what has existed in the past and how New Mexico handles brokerage relationships under its new laws. Let’s say, for example, your parents are going to be away on a vacation for an extended period of time. While they are gone, they want someone to deposit their checks, pay their bills and carry on business for them as usual. What they want, in fact, is someone to keep their best interests in mind and to act accordingly. They ask you to represent them, to handle all the paperwork for 39

Profile for Linda DeVlieg Real Estate

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

Profile for lindadev