What are the three main types of agency?

The correct understanding of the three main types of agency encompasses Exclusive, Non-Exclusive, and Dual agency relationships.

Exclusive agency typically refers to an agreement where only one agency is authorized to sell a property, but the owner retains the right to sell it themselves without owing a commission. Non-Exclusive agency permits the property owner to engage multiple agents to sell the property and is often characterized by a more competitive market approach. Dual agency occurs when an agent represents both the buyer and the seller in a transaction, which raises unique legal and ethical considerations that must be managed carefully to avoid conflicts of interest.

These classifications help clarify the different dynamics in agency relationships in real estate, setting clear expectations and responsibilities for both agents and clients. Understanding these distinct forms of agency is crucial for real estate professionals as they navigate their roles and obligations in various transactions.

In contrast, the other options represent different concepts or classifications that are not the standard framework for types of agency in real estate. Terms like 'General' and 'Agency by Estoppel' are more nuanced, while classifications like 'Partnership' and 'Joint' describe business structures rather than specific agency types.