Agency agreement – the Law of Contracts defines it as an agreement to regulate the relations between one party, called “assignor”, who wishes something to be done, usually against monetary reward. And another party called “assignee”, who wishes to perform the asked job and to get the reward for it.
In practice, within the area of Real Estate deals, the agency agreement usually sets the relations between a seller or buyer of a real estate, on one hand, and real estate agent, on another. Where the assignor (being the seller of the buyer) wants from the real estate agent to advertise the property for sale and find a buyer. Or in the opposite scenario – to find a convenient property for them to buy.