Key Takeaways
- Louisiana recognizes designated agency, single agency, and dual agency with written consent
- The Louisiana Dual Agency Disclosure form must be signed by all parties before dual agency exists
- A single agent owes fiduciary duties to their client including loyalty, confidentiality, and full disclosure
- Louisiana law requires written agency agreements for all buyer and seller representations
- Agents must disclose their agency relationship at first substantive contact with a consumer
Louisiana Agency Relationships
Louisiana law defines the types of agency relationships that real estate licensees may have with consumers.
Types of Agency Relationships
Single Agency
A single agent is a licensee who represents only one party in a transaction:
| Single Agent Role | Represents |
|---|---|
| Seller's agent | Seller only |
| Buyer's agent | Buyer only |
Single agent fiduciary duties include:
- Loyalty - Undivided allegiance to the client
- Confidentiality - Keep client information private
- Disclosure - Full disclosure of material facts to client
- Obedience - Follow lawful instructions
- Accounting - Account for all funds and documents
- Reasonable care - Exercise skill and diligence
Designated Agency
Louisiana allows designated agency within a brokerage:
| Feature | Description |
|---|---|
| Definition | Different agents in same firm represent different parties |
| Seller's designated agent | Represents seller's interests only |
| Buyer's designated agent | Represents buyer's interests only |
| Broker role | Remains neutral, supervises both |
Key Point: Designated agency allows a firm to represent both sides while individual agents maintain loyalty to their respective clients.
Dual Agency
Dual agency occurs when one licensee (or one brokerage without designated agency) represents both buyer and seller:
| Requirement | Description |
|---|---|
| Written consent | Both parties must consent in writing |
| Disclosure | Dual Agency Disclosure form required |
| Limited service | Agent cannot fully advocate for either party |
| Confidentiality limits | Cannot disclose price/terms one party will accept |
Duties to ALL Parties
Louisiana law imposes certain duties on all licensees to all parties in a real estate transaction, regardless of who they represent:
Universal Duties
| Duty | Description |
|---|---|
| Honesty | Be honest and truthful in all dealings |
| Disclosure of defects | Disclose known material defects |
| Fair dealing | Deal fairly with all parties |
| Present offers | Present all written offers promptly |
| Account for funds | Properly handle all funds |
What Must Be Disclosed to ALL Parties
- Known material defects affecting property value
- Licensee's relationship with parties (agency status)
- Any personal interest in the transaction
- Material facts that could affect decisions
Written Agency Agreements
Louisiana requires written agency agreements:
| Agreement Type | Purpose |
|---|---|
| Listing Agreement | Authorizes broker to represent seller |
| Buyer Agency Agreement | Authorizes broker to represent buyer |
| Dual Agency Disclosure | Documents consent to dual agency |
Required Elements
Written agency agreements must include:
- Names of parties
- Property description (listings)
- Commission/compensation terms
- Duration of agreement
- Agency relationship type
- Signatures of all parties
Compensation Disclosure
A licensee shall not accept compensation from more than one party without full written disclosure to all parties.
| Situation | Requirement |
|---|---|
| Receiving fee from one party | Standard—no special disclosure needed |
| Receiving fee from multiple parties | Must disclose to ALL parties in writing |
What type of agency exists when different agents in the same brokerage represent the buyer and seller in the same transaction?
Which duty does a Louisiana licensee owe to ALL parties in a transaction?
What is required before dual agency can exist in Louisiana?