Navigating Client Representation: A Recent Case Decision at EMPIRE Leasing

Understanding the nuances of client representation is paramount in our industry. To ensure clarity and foster best practices, we're sharing a recent case decision that sheds light on how we determine client-side representation in evolving circumstances.

The Scenario: A Case of Renewed Property Search

Let's delve into the specifics of a recent situation involving two of our valued EMPIRE Agents: Agent "A" and Agent "B," and a client we'll refer to as Client "A."

Facts of the Case:

1. Agent "A" initially facilitated a successful lease agreement (Contract "A") with Client "A" in a solo transaction.
2. Subsequently, Client "A" decided to pre-terminate Contract "A" and informed Agent "A" of their intention to move out.
3. In their search for a new rental property, Client "A" came across listings posted by Agent "B".
4. Interestingly, the unit advertised by Agent "B" was, in fact, listed by Agent "A".
5. Client "A", unaware of the shared listing, reached out to Agent "B" to inquire about the property and scheduled a viewing. This viewing was to be conducted by Agent "A", as the listing agent.
6. Agent "A" subsequently contacted Client "A" to confirm the viewing appointment that Client "A" had arranged through Agent "B".

The Question at Hand:

In this scenario, who holds the official role of client-side agent for Client "A" in this potential new lease agreement? Is it Agent A, who initially secured the client, or Agent B, who facilitated the viewing for a new property?

Our Decision:

After careful consideration of the facts, the decision is that Agent B is the official client-side agent representing Client "A in this new potential lease transaction.

Rationale Behind the Decision:

Our decision is based on the following key principles:

1. Termination of Previous Relationship: The pre-termination of the initial lease agreement (Contract "A") effectively dissolved the formal fiduciary relationship between Client "A" and Agent "A" concerning that specific transaction. While a positive relationship may still exist, the official representation for a new transaction is open.
2. Independent Client Acquisition: Agent "B" proactively attracted Client "A" through their own marketing efforts, specifically via a Facebook inquiry. This demonstrates an independent acquisition of the client for a new property search, unrelated to the previous transaction facilitated by Agent "A".
3. First Point of Contact for New Inquiry: Agent "B" was the first agent to receive a formal inquiry and secure a viewing request from Client "A" regarding a new property. This proactive engagement establishes Agent "B" as the initiating agent for this new search.
4. Timing of Awareness: Agent "A" only became aware that Client "A" was actively looking for a new rental property when Agent "B" forwarded the viewing form. This indicates that Agent "B" was the catalyst for this new phase of Client "A"'s property journey.
5. Defining Roles: To ensure clarity and avoid potential conflicts, Agent "A" will now assume the role of the listing-side agent, representing the lessor of the property. Conversely, Agent "B" will act as the client-side agent, advocating for Client "A"'s best interests in this new potential lease agreement.

Key Takeaways for EMPIRE Agents:

This case highlights the importance of understanding the lifecycle of client relationships and the significance of independent client acquisition. While past successes are valuable, each new property search or transaction can establish a new client-agent relationship. Proactive engagement and securing the initial viewing schedule for a new property play a crucial role in determining client-side representation.

We encourage all EMPIRE Agents to familiarize themselves with this decision and to continue upholding the highest standards of ethical conduct and client representation in all your endeavors. If you have any questions or require further clarification, please do not hesitate to reach out to our CORE Leaders and/or your sponsors.