Which type of law governs real estate agency relationships?

Real estate agency relationships are primarily governed by common law. This area of law has developed through judicial decisions over time and establishes the foundational standards, duties, and obligations that real estate agents and brokers owe to their clients. Common law encompasses principles such as fiduciary duty, which requires agents to act in the best interests of their clients, as well as concepts like disclosure and loyalty.

While administrative law pertains to regulations created by governmental agencies that oversee real estate practices, it does not directly govern the relationships between agents and clients. Contract law, while critical in real estate transactions (such as property sales and lease agreements), is more focused on the enforceability of agreements rather than the nature of agency relationships. Tort law, on the other hand, concerns civil wrongs and may arise in the context of real estate but does not primarily dictate how agency relationships are structured or enforced.

By understanding that common law is the basis for agency relationships in real estate, one can appreciate the historical context and legal precedents that shape the responsibilities and expectations within these professional interactions.