What defines a non-agency relationship?

A non-agency relationship is characterized by one party being unrepresented by a brokerage. This means that in situations where a non-agency relationship exists, one party does not have a formal connection or representation through a brokerage, which can lead to implications regarding duties, obligations, and negotiations.

In real estate transactions, agency relationships typically involve brokers representing either buyers or sellers, which establishes a fiduciary duty. When one party is unrepresented, they often do not have the same level of guidance, advice, or legal obligations that a represented party would receive, potentially impacting their decision-making process and the transaction's overall dynamics.

Understanding this concept is essential for recognizing the implications of representation in real estate dealings, as it affects how parties interact and the responsibilities of those who are involved in the process.