Overview of Agent and Broker Relationship Risks

Key Takeaways

• Five risk categories: fiduciary breach, information asymmetry, competence gaps, loyalty conflicts, and financial misalignment.
• Agent compensation structures create inherent incentive misalignment—agents earn more when transactions close at higher prices.
• Three-layer protection: rigorous selection, written documentation, and independent verification of all critical information.
• Most agent risks are mitigable with proactive management—not reasons to avoid using agents entirely.