Agency Relationships With Clients and Customers
Traditionally, the broker provides a conventional full-service, commission-based brokerage relationship under a signed agreement with a seller or "buyer representation" agreement with a buyer. In most states this creates, under common law, an agency relationship with fiduciary obligations. Some states also have statutes which define and control the nature of the representation and have specific business broker licensing requirements.
Agency relationships in business ownership transactions involve the representation by a business broker (on behalf of a brokerage company) of the selling principal, whether that person is a buyer or a seller. The principal broker (and his/her agents) then become the agent/s of the principal, who is the broker’s client. The other party in the transaction, who does not have an agency relationship with the broker, is the broker's customer.
Read more about this topic: Business Brokers
Famous quotes containing the words agency and/or clients:
“It is possible that the telephone has been responsible for more business inefficiency than any other agency except laudanum.... In the old days when you wanted to get in touch with a man you wrote a note, sprinkled it with sand, and gave it to a man on horseback. It probably was delivered within half an hour, depending on how big a lunch the horse had had. But in these busy days of rush-rush-rush, it is sometimes a week before you can catch your man on the telephone.”
—Robert Benchley (1889–1945)
“...a lot of my people are models. I like that for them. I admire models, so I think that’s right for my people. ...I love it when I have an important [client]. And the pictures and awards. One of my clients has these television awards—a beautiful statue of a woman. I think it’s an Emmy. People would be lucky to get one. She has two. I think that’s great.”
—Elaine Strong (b. 1934)