What does the Law of Agency pertain to?

The Law of Agency primarily pertains to the relationships between principals and agents. In the context of real estate, a principal is typically a client, such as a property owner or seller, while an agent is a real estate professional who acts on behalf of the principal. This law establishes the legal principles that govern how an agent can represent the interests of the principal, including duties such as loyalty, confidentiality, and full disclosure.

Understanding the Law of Agency is crucial for property managers and real estate professionals because it outlines the expectations and legal obligations agents have towards their clients. It defines the scope of authority an agent has, as well as the responsibilities they bear in transactions, ensuring that the agent acts in the best interest of the principal. This foundational relationship is essential in property management and real estate transactions, as it builds trust and accountability.

The other topics listed do not directly relate to the Law of Agency. Property tax assessments involve taxation laws, property management licenses are governed by state regulations and standards, and the responsibilities of landlords and tenants fall under landlord-tenant law rather than the agency relationship.