Agency Flashcards
Agency Relationship
A fiduciary relationship between an agent and a principal where respective rights and duties are prescribed by laws of agency and by the agency agreement executed by the two parties
Law of Agency
A body of law defining roles, duties and responsibilities of an agent and a principal. Laws also set forth standards of conduct agent and principal owe to a customer
Principal
The employer in an agency relationship, to whom the agent owes fiduciary duties (client)
Agent
The party in an agency relationship who is hired by the principal to perform certain duties. In so doing, the agent must also uphold fiduciary duties owes the principal
Customer
In agency law, a party outside of the fiduciary relationship of client and agent. If an agent treats a customer as a client, an implied agency may result
Universal Agency
A fiduciary relationship which empowers an agent to perform any and all actions for a principal that may be legally delegated
General Agency
A fiduciary relationship which authorizes the agent to conduct a broad range of activities for the principal in a particular business enterprise. May or may not include authority to enter into contracts
Special Agent
An agency relationship which restricts the agent’s authorization to a specific set of duties. The relationship usually terminates on performance of these duties, as in a real estate broker’s listing agreement. (limited Agency)
Implied Agency
An agency relationship that arises by implication from the actions and representations of either agent or principal
Fiduciary Duties
Duties of an agent to the principal in an agency relationship, including skill, care, diligence, loyalty, obedience, confidentiality, disclosure, and accounting
Single Agency
The agent represents one party in a transaction. The client may be either seller or buyer
Subagency
An agency relationship between the client of a listing broker and other brokers and salespeople who have agreed to assist the broker in procuring a customer for the client. The assisting brokers are agents of the listing broker and subagents of the listing broker’s client
Dual Agency
Representing both principal parties to a transaction
Facilitator
A transaction broker who assists principal parties in completing a transaction without acting as a fiduciary agent of either party
Disclosure
Client Disclosure: An agent who intends to represent a seller or owner must disclose the import of the proposed agency relationship in writing before the listing agreement is executed. The agent must inform the seller or landlord in writing that the agent will be representing the client’s interests as a fiduciary, and will not be representing the interests of any potential buyer
Customer Disclosure: A listing agent disclose in writing to a buyer or tenant that the agent represents the owner in the transaction. This disclosure must occur before or at the first “substantive contact” with the customer prospect.
