What is express agency in real estate?

What is express agency in real estate?


Express agency in real estate refers to a specific type of agency relationship between a real estate agent and their client. It is a legally binding agreement where the agent is given explicit authority to act on behalf of the client in real estate transactions. This article will delve deeper into the concept of express agency, discussing its characteristics, benefits, and potential drawbacks.

Characteristics of Express Agency

Explicit Agreement: Express agency is established through a written or oral agreement between the real estate agent and the client. This agreement clearly outlines the scope of the agent’s authority and the responsibilities of both parties.

Agent’s Authority: In an express agency relationship, the agent has the authority to represent the client in various real estate matters, such as negotiating offers, preparing contracts, and providing advice. The agent acts as a fiduciary, meaning they must act in the best interests of the client and maintain confidentiality.

Client’s Obligations: The client has certain obligations in an express agency relationship. These may include providing accurate information, cooperating with the agent, and fulfilling any agreed-upon financial obligations, such as paying the agent’s commission.

Benefits of Express Agency

Professional Expertise: Engaging in an express agency relationship allows clients to benefit from the expertise and knowledge of a licensed real estate agent. Agents have a deep understanding of the local market, access to comprehensive listing databases, and experience in negotiating deals.

Time and Effort Saving: By entrusting a real estate agent with the responsibility of handling various aspects of a real estate transaction, clients can save significant time and effort. Agents can efficiently handle tasks such as property searches, scheduling viewings, and coordinating with other parties involved in the transaction.

Legal Protection: Working with a real estate agent under an express agency agreement provides clients with legal protection. Agents are bound by professional standards and regulations, ensuring they act ethically and in compliance with relevant laws. If any disputes arise during the transaction, clients can seek recourse through the agent’s brokerage or regulatory bodies.

Potential Drawbacks of Express Agency

Costs and Commissions: One potential drawback of express agency is the cost involved. Real estate agents typically charge a commission based on the sale price of the property. This commission is usually a percentage of the transaction value and can be a significant expense for clients. It is important for clients to understand and agree upon the commission structure before entering into an express agency relationship.

Limited Control: While express agency provides clients with professional assistance, it also means relinquishing some control over the transaction. Clients must trust their agent’s judgment and decisions, which may not always align with their own preferences. Effective communication and a clear understanding of expectations can help mitigate this potential drawback.


Express agency in real estate is a valuable arrangement that allows clients to benefit from the expertise of licensed agents. By establishing a clear agreement, clients can enjoy professional assistance, save time and effort, and gain legal protection throughout the real estate transaction. However, it is essential for clients to consider the costs involved and be prepared to relinquish some control over the process. Overall, express agency offers a practical and efficient approach to navigating the complexities of the real estate market.


– National Association of Realtors: www.nar.realtor
– Real Estate Express: www.realestateexpress.com
– Investopedia: www.investopedia.com