Addt'l Notes on Agency Basics

Question 1

DUE DILIGENCE & DISCLOSURE of MATERIAL FACTS

• Material facts

Information which the licensee possesses that materially and adversely affects the consideration to be paid by any party to the transaction.

• Required Disclosures

1. Seller’s inability to perform
2. Buyer’s inability to perform
3. Material Defects
4. Liens or encumbrances
   
   1. Vicinity of airport

Question 2

AGENCY RELATIONSHIPS

• Client & Attorney in Fact

Created through Power of Attorney

• Power of Attorney may be:

Specific; limited

General; various/ongoing

Universal; unlimited

Question 3

EMPLOYMENT/REPRESENTATION AGREEMENTS

• Real Estate Agency and Election Agreement - READE
• Listing Agreement - Sellers

1. Exclusive Agency
2. Exclusive Right
3. Open Listing
4. Net Listing

• Buyer Broker Exclusive Agency Agreement - Buyers
  
  • Dual Agency Agreements - Limited Representation Agreement

Question 4

TERMINATION OF AGENCY

• PERFORMANCE
• MUTUAL AGREEMENT
• EXPIRATION OF TERM
• REVOCATION BY PRINCIPAL OR AGENT
• DESTRUCTION OR CONDEMNATION OF PROPERTY
• BANKRUPTCY
  
  • DEATH OR SERIOIUS INCAPACITY OR PRINCIPAL OR AGENT