Agency and brokerage: who is the agent, the salesperson, and cooperating brokers

Follow the representation relationship

The client, or principal, authorizes representation. The brokerage relationship is with the broker; a real estate salesperson performs brokerage work through a sponsoring broker. An associate real estate broker holds a broker's license but works under another broker. License status and whom someone represents are different questions.

For example, a seller retains Harbor Brokerage. Harbor's salesperson Maya obtains the listing and handles communications. The seller is the principal, Harbor is the seller's broker, and Maya works through Harbor.

Supervision and association in New York

New York requires regular, frequent, and consistent personal guidance, instruction, and oversight by the broker. Merely lending a name is insufficient. The broker and salesperson keep written records identifying listings and transactions and their dates. Upon leaving, the salesperson must turn over listing information obtained during the association. The salesperson cannot perform licensed brokerage activities during a gap before association with another licensed broker.

Cooperation does not identify the client

A cooperating broker participates with another broker in a transaction. The cooperating broker may represent the buyer or assist the listing broker as a broker's agent on the seller's side. A broker's agent assists the engaging broker's client through that broker, without forming a direct agency relationship with that client. Determine the established relationship; neither arranging a showing nor the source of compensation establishes whom the broker represents.

Keep dual agency distinct

In New York dual agency with designated sales agents requires informed written consent. A designated sales agent advocates for the assigned buyer or seller under the dual broker's supervision. Designation does not remove dual agency or restore undivided loyalty.

For exam scenarios, identify the principal, the representing broker, and the supervised licensee, then determine the cooperating broker's actual role.