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Real Estate Exam > 4.3 - Law of Agency > Flashcards

4.3 - Law of Agency Flashcards

1
Q

can an infant act as an agent?

A

yes

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2
Q

what is a principal vs third party?

A

principal: party that the brokerage/you represent
third party: the other parties in the transaction (that you don’t represent)

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3
Q

how old must someone be to be licensed under RESA?

A

19 years

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4
Q

is the agent or brokerage a part of the sale?

A

brokerage

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5
Q

what is an express contract (agency relationship)?

A

written or oral contract with mutual agreement of both parties

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6
Q

what is implied agency?

A

an agency implied by conduct. created by/through the conduct of the parties. can create an agency relationship through your actions based on your actions/words.

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7
Q

what is (authority by) ratification?

A

when agent’s authority can be granted retroactively. agent informs principal of his actions and the principal accepts, principal is bound by contract.

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8
Q

what is agency by estoppel?

A

when the principal acts in such way as to lead a 3rd party to believe that the agent has authority to act on behalf of the principal. very limited right.

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9
Q

when does an agent have actual authority?

A

express contract relationship (written or oral agreement, mutual)

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10
Q

what’s express authority?

A

authority that is created and limited by the terms of the contract. Promise to pay commission.

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11
Q

what is implied authority?

A

authority of agent to perform whatever needed to carry out express authority granted - i.e. showing open houses

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12
Q

what is usual/customary authority?

A

agent is governed by what is usual in the trade i.e. collecting deposit

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13
Q

what is apparent authority?

A

results from estoppel - ppl think that agent is legit bc principal makes the impression to 3rd party that they are

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14
Q

whats the difference between implied agency and implied authority?

A

implied agency: agent misleads someone
apparent authority: principal misleads someone

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15
Q

why can authority be terminated at will?

A

because the relationship is based on MUTUAL consent

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16
Q

does authority terminate with frustration (i.e. house burns down)?

A

yes

17
Q

when does the duty of confidentiality (from agent for client) terminate?

A

never

18
Q

what are 3 cases where agent may be liable to 3rd party?

A
  1. no disclosure of agency
  2. no authority (agent commits act without permission)
  3. agent committed torts
19
Q

before assisting or representing anyone, what must an agent do?

A

disclose the type of representation/relationship

20
Q

3 types of agency relationships

A

sole agency (client and realtor)
no agency (unrepresented party)
dual agent (basically banned in bc)

21
Q

what can a licensee do when dealing with an unrepresented party?

A
  • provide general market information
  • help fill out/complete contract without providing advice
  • presenting offers to/from the unrepresented party
22
Q

where do BCDSA prescribed standard forms get submitted?

A

the brokerage

23
Q

what is the disclosure of interest in trade?

A

licensee buying/selling real estate for himself or an associate. must be given before agreement is entered into, doesn’t apply to rentals. if you don’t disclose: void contract and disciplinary proceedings

24
Q

do you need to have a disclosure of representation in trading services if you’re hosting an open house and didn’t receive personal info from consumer?

A

no

25
Q

what is the disclosure of risks to unrepresented parties form?

A

advise risks involved in being an unrepresented party, used when providing trading services to a client and unrepresented party in same transaction

26
Q

what is the disclosure of risks associated with dual agency form and where must it be submitted?

A

gives info about concept of dual agency, managing broker must sign it, you must submit it to the BCFSA

27
Q

what is the agreement regarding conflict of interest between clients form?

A

a form that discloses conflict of interest and gets permission from all parties(to continue to represent 1 party).

28
Q

what are the 3 parties in a conflict of interest between clients form?

A

released client
continuing client
licensee

29
Q

when must you provide the notice to seller regarding contract assignments?

A

when the buyer removes 2 standard terms to assign

30
Q

what is the disclosure to sellers of expected renumeration (DER)?

A

used when offer is made to seller, tells how much licensee expects to get in a dollar amount. must be submitted with EVERY offer/

31
Q

who pays the licensee their renumeration?

A

their brokerage

32
Q

what are net listings? are they allowed?

A

when realtor renumeration is sold-list. not allowed.

33
Q

do you have to disclose renumeration/benefits to principal?

A

yes. or else its a secret profit. not allowed.

34
Q

what should a licensee doff a client instructs them to withhold a disclosure of material latent defect known to the licensee?

A

licensee must refuse to provide further trading services on behalf of that client

35
Q

3 types of real estate agency contracts

A

exclusive listing
multiple listing
open (general listing)

36
Q

what is an exclusive listing?

A

an exclusive right to sell for a specific period or time. if the owner sells himself, still has to pay commission. if 2nd agent is used, 2 commissions could be payable.

37
Q

what is a multiple listing?

A

an exclusive right to sell where listing is distributed to all members of the real estate board and placed on MLS

38
Q

what is an open (general) listing?

A

owner may employ a number of agents to find the purchaser. commission is then paid to the agent who is the effective cause of the sale. owner can also sell himself and no commission will be payable

Real Estate Exam (16 decks)

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