What is the purpose of an Agency Consent Agreement?

The purpose of an Agency Consent Agreement is to outline agency relationships. This document serves to clarify the nature of the relationship between the agent and the principal (the client), ensuring both parties understand their rights, responsibilities, and the scope of the authority granted to the agent. By detailing the specifics of the agency relationship, the agreement helps prevent misunderstandings and sets clear expectations for both the agent's services and the client's objectives.

In real estate and other professional contexts, establishing and documenting these relationships is crucial because it governs how the agent will act on behalf of the client, including matters related to representation, fiduciary duties, and any potential conflicts of interest. This understanding is essential for fostering trust in the professional relationship and providing clarity throughout the duration of the engagement.