2. A: Definitions and Types of Agenyc Flashcards
One who is authorized to act on behalf of another and bind that party by the agent’s decisions and actions.
An agent
One who grants the authority for another to act on the principal’s behalf.
The principal
An agent of an agent.
Subagent
One who is not in an agency relationship with the licensee
A customer
One who is in an agency relationship, generally a principal, with a licensee.
A client
One who is any person who has been granted a power of attorney on behalf of someone else as that person’s agent.
An attorney-in-fact
A stand-in for another and has limited, generally very temporary authority; this term can be loosely used to mean agent.
A proxy
A type of agency which grants the agent the authority to represent the principal who has been granted an unilimited power-of-attorney for another in both personal and business matters.
Universal (type of agency)
A type of agency that grants the agent broad authority to act continuously on behalf of the principal in all authorised business maters, such as a licensee associated with a broker/agent or a property manager acting on behalf of a landlord.
General (type of agency)
A type of agency where the agent’s authority to represent the principal is more restricted than general agency, and typically is limited to a particular transaction, such as a listing.
Special (type of agency)
A type of agency relationship where the agent is representing only one party.
Single agency
A type of agency relationship where the agent represents both parties.
Dual agent
A type of agency relationship where anyone who is authorised to act as an agent for the agent of a principal.
Subagency
A fiduciary duty that means to work steadfastly for, never against, the best interests of the principal while applying expected, reasonable care, skill and diligence in the performance of all transaction related matters.
Loyalty, allegiance
A fiduciary duty to adhere to the principal’s instructions (does NOT apply to illegal activity)
Obedience
A fiduciary duty to give a fair and accurate accounting of all funds that are transaction-related, even if that means after the transaction is over and the agency relationship has been terminated.
Accounting
A fiduciary duty to disclose all pertinent information to the principal.
Disclosure
A fiduciary duty to keep confidential all information that might weaken the principal’s interests such as lowest acceptable price or unusual/extenuating circumstances.
May be revealed with permission. Does not apply to illegal activity. Outlives the termination of the agency relationship.
Confidence
Any general exaggeration found in promotional materials or agent comments intended to create a stronger impression of a property.
Puffing, puffery
A variety of misleading statements or undisclosed facts that an agent reasonably should have known and disclosed.
Misrepresentation
Making a careless statement where the exercise of due diligence and professional standards of care would have made the correct facts known.
Negligent Misrepresentation
Making a false-statement - or failing to make a known, material disclosure - that is likely to induce a reasonable person to act against their own best interest.
Material misrepresentation
Intentional misrepresentation designed to persuade a party to make a decision the party would not have had full and accurate disclosure been made.
Fraud
Any property condition that is significant in a party’s decision-making process of approving or disapproving a purchase.
Material facts
