Advanced Agency Law Flashcards
What is Agency?
Agency is the fiduciary relationship in which the agent is held in a position of special trust and confidence by the principal.
Limited Agency
Limited Agent. “A Limited Agent represents both seller and buyer in the same transaction and works to assist in negotiating a mutually acceptabletransaction. A Limited Agent has fiduciary duties to both seller and buyer. However, those duties are “limited” because the agent cannot provide to both parties undivided loyalty, full confidentiality and full disclosure of all information known to the agent. For this reason, a Limited Agent must remain neutral in the representation of a seller and buyer, and may not disclose to either party information likely to weaken the bargaining position of the other; such as, the highest price the buyer will pay or the lowest price the seller will accept”.
“A Limited Agent must, however, disclose to both parties material information known to the Limited Agent regarding a defect in the Property and/or the ability of each party to fulfill agreed upon obligations, and must disclose information given to the Limited Agent in confidence, by either party, if the failure to disclose would be a material misrepresentation regarding the Property”.
Implied Agency
An implied agency: is an agency that has been formed based on the client and the agent.
Who is the Principle Broker?
In the state of Utah, the only person who has the authority to enter into an agency relationship with a member of the public is a broker. He or she can hire and supervise other agents.
Fiduciary
A relationship in which the agent is obligated to act in the best interests of the client above all else, including his or her own self-interest
Specific Agency
An agency relationship in which the agent is appointed to do a specific task.
General Agency
A general agent in real estate is an agent who can perform any and all acts that are associated with the ongoing business that the principal has appointed the general agent to act in.
Disclosure of Agency
An agency disclosure statement normally defines the various relationships of buyers and sellers in a real estate transaction.
Contingency
Contingency clause gives parties involved the ability to retract out of the contract under certain circumstances that must be negotiated between the buyer and seller.
Subagents
The relationship which a real estate broker and his/her agents have with a buyer of a business, home, or property
Real Estate Franchise
Several Real Estate Franchises have several locations worldwide and share similarities amongst branding, operational and recruitment methods.
Multiple Listing Service
It is a service database use by real estate brokers which allows them to share about properties and listings.
Latent Defect
This is usually hidden defect in materials which may cause failure or something to malfunction.
Express Agency
this is an agreement which states the principal agrees to be represented by the agent and this must be in writing
- This agreement outlines the responsibilities and obligations
- This agreement outlines responsibilities of the principal, which includes compensation
Terminating Agency
Ex: When you have a listing agreement in place and both the broker and seller agree to cancel the listing agreement that will terminate the agency relationship. Or if a death occurs of one of the principles can terminate the agency as well.
Limited Service Agreement
This is an arrangement where a broker agrees to do a specific task of a transaction.
Open Listing
- Open listings is an online real estate brokerage
- This is focused predominately on representing buyers.
Exclusive Agency Listing
An agreement under which the listing broker acts as the agent
Exclusive Right to Sell
During this process, the seller cannot list the property with any other agent and must pay the agent’s commission even if he or she finds
buyer.
Seller Agent Duties
- They will help the client get the home ready for sale
- They discuss the price
- They negotiate the price
- They prepare the marketing procedure for the house
Flat Fee MLS
- Flat Fee MLS refers to the practice in the real estate industry of a seller entering into agreement where the broker agrees to accept a flat fee rather than a percentage of the sale price
Disclosure:
Disclosures are a imperative part of your real estate transactions
Confidentiality
the agent must keep confidential any information given to hum or her by their client
Accountability
It is important to hold your peers accountable and to set an example for everyone else
Have agents create a business plan with goals, and the steps they will take to reach those goals. Take time to review the goals plan, address personal and professional goals and demonstrate the system in place to track these goals
