Agency Relationships, Fiduciary Duties, and Brokerage Practice
How agency arises
Agency can be created by express agreement (written or oral), implication from conduct, ratification of an unauthorized act, or estoppel when a party is led to believe representation exists. Missouri requires licensees to disclose, clearly and in writing, whom they represent, and dual agency requires the informed written consent of both parties. Designated agency lets two licensees in the same firm represent opposite sides; the brokerage is dual, but each licensee owes full fiduciary duty to only one client.
The duties
Memorize the fiduciary set: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care and skill. Loyalty and confidentiality outlive termination for information the client wanted kept secret. Confidentiality never excuses hiding material facts - known latent defects, adverse title conditions, or anything a reasonable buyer would want to know. Cooperating brokers are historically presumed subagents of the seller unless the relationship is disclosed otherwise; today buyer representation should be documented so no one guesses.
Practice points
Compensation does not create agency - a buyer's agent paid from the seller's proceeds still represents the buyer. A licensee acting as a principal (buying or selling for themselves) must disclose that status in writing. Never give legal or tax advice; refer out.
Traps
Watch for questions that confuse designated agency with dual agency, or that let a licensee reveal a client's motivation or bottom-line price. Watch for the agent who "represents both sides" without written consent.
Worked example
Your seller-client privately says he would accept $20,000 below list. That is confidential - you cannot tell the buyer's agent. If instead you learn the basement floods, that is a material fact and must be disclosed to the buyer regardless of your client's wishes.