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UBC Applied Course > Agency > Flashcards

Agency Flashcards

1
Q

What is agency?

A

Agency is the relationship in which one person, the agent, is granted the authority to represent and act for another person, the principal, in dealings with others

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2
Q

Ideally, the agent relationship is created by a _____________ where the authority of the agent is clearly laid out

A

Written contract

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3
Q

Once an agency relationship has been created, as a agent under common law, you have a fiduciary obligation of loyalty to act in your client’s best interest and to put your client’s interest ahead of everything else

A

Word

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4
Q

Fiduciary Obligations include:

A

-The duty of confidentiality
-The duty to avoid conflicts of interest, and if one does arise, to disclose it
-The duty to obey all lawful instructions of the client-The duty to make full disclosure of all material information

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5
Q

What extends forever?

A

The duty of confidentiality

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6
Q

Brokerage agency models

A

Designated agency

Brokerage agency

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7
Q

Designated agency

A

The brokerage may designate one or more licensees engaged by the brokerage to provide the services on behalf of the brokerage

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8
Q

Brokerage agency

A

When a brokerage enters into a service relationship with a consumer where the brokerage is appointed as that clients’ agent, all licensees engaged by the brokerage assume the agency obligation of the brokerage in relation to that client

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9
Q

Sole agency

A

An agency relationship is created when the brokerage and the client agree that the brokerage will designate one or more licensees at the brokerage to provide real estate services as the designated agent for the client

This means that 2 licensees working at the same brokerage who are designated agents for different clients can represent a buyer and a seller in a transaction, or 2 buyers competing for the same property

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10
Q

Dual agency

A

Only permitted under specific circumstances
-When permitted, you represent both the buyer and the seller in the same transaction

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11
Q

When is dual agency permitted?

A

Remote locations that is underserved by licensees, and would be impracticable for the two parties to be represented by separate licenses

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12
Q

Teams

A

Individual team members are unable to operate as designated agents apart from each other

If half the team is on the sellers side and the other half is on the buyers side this is dual agency

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13
Q

When the brokerage only represents one client in a particular transcation

A

the brokerage is the agent of that client

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14
Q

Brokerage agency is also the only brokerage model for brokerages that

A

deal in rental property management and strata management

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15
Q

No agency

A

Aka unrepresented party

A party not receiving agency representation in a real estate transaction

Still owed the duties of honesty and reasonable care and skill

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16
Q

A consumer who chooses to be an unrepresented party must be made aware of the risks

A

There are forms created to help explain the risks

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17
Q

The limited trading services that you may offer to an unrepresented party include

A

Providing general market information, contracts, and other relevant documents

Assisting the unrepresented party to complete a contract (without providing advise on appropriate terms)

Presenting the offers and counter-offers to or from the unrepresented party

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18
Q

How an agency relationship is created

i) Agency by way of a written service agreement

A

Most often created expressly between an agent and a principal

Primary method is through a service agreement, such as a listing agreement or buyers agency exclusive contract

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19
Q

Expressly

A

An agreement is made, either in writing or orally, between the agent and the principal

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20
Q

Clients can include

A

Individuals or entities, such as corporations, trusts, partnerships, funds, and unincorporated associations or organizations

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21
Q

How an agency relationship is created

Agency by the way of a written service agreement

A

The brokerage is to provide trading services to an owner of real estate in relation to the offering of that real estate for sale or other disposition

The brokerage is to provide rental property management services to an owner of rental real estate

The brokerage is to provide strata management services to a strata corporation

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22
Q

How an agency relationship is created

Agency by way of oral agreement

A

You cannot waive the requirement for a written agreement

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23
Q

How an agency relationship is created

Agency by way of an implied agreement

A

If you are acting on behalf of a person who is not otherwise represented, your actions may lead the party believing that you were acting as their licensee

Can be found to exist even if you did not intend for it to be created

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24
Q

DORTS Form

A

Disclosure requirements and the Use of Disclosure of Representation in Trading Services Form

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25
Q

Disclosure requirements and the Use of Disclosure of Representation in Trading Services Rules

A

Disclosure must be made early and may be ongoing

26
Q

Disclosure can come in many forms

A

Some in writing, some by the BCFSA, and some have no method of delivery outlined in RESA

27
Q

Using the Disclosure of Representation in Trading Services Form

A

When dealing with a consumer, whether or not an agency agreement, you must fully disclose, in writing, the tole and nature of the services you will be providing

28
Q

To comply with RESA, you should begin by discussing

A

the agency relationship with the consumer by using the agency relationship using the DORTS form

29
Q

When must the Disclosure of Representation in trading services from be provided?

A

Prior to providing trading services to or on behalf of a party to trade in real estate and the disclosure must be made using this form

30
Q

Key purpose of Disclosure of Representation in trading services from

A

To explain to the consumer the difference between being a client and being an unrepresented party in a trade in real estate

The form highlights the key agency fiduciary duties that a licensees owes to a client

31
Q

If they are unrepresented

A

You will not be representing the client and you will not owe them any special legal duties

32
Q

When does the client not have to present this form?

A

As long as the client does not solicit or collect personal information such as their motivation, financial qualifications, or needs in respect of real estate

33
Q

Restriction on dual agency and the exemptions

A

Restriction on dual agency and the exemptions

34
Q

In BC, Dual agency is restricted

A

In BC, Dual agency is restricted

35
Q

Exemption to dual agency

A

In remote and underserved locations where it is impracticable for the parties to be represented by different licensees

36
Q

Dual agency definition

A

The agency of representation, by the brokerage, of clients who have conflicting interests in respect of a trade in real estate

37
Q

Parties who have conflicting interest in a given trade in real estate include

A

-buyer and a seller
-lessor and lessee
-Assignor and an assignee
-2 or more buyers, lessees or assignees who are interested in the same property

38
Q

Disclosure of Risks Associated with Dual Agency Form

A

Disclosure of Risks Associated with Dual Agency Form

39
Q

When must you have the Disclosure of Risks Associated with Dual Agency Form signed?

A

Prior / before providing any trading services to the parties

And it must be signed by your managing broker

40
Q

What else is needed beyond the Disclosure of Risks Associated with Dual Agency Form

A

A written agreement of dual agency with each party to whom the dual agency services will be provided

Requires the consent of both parties

41
Q

Unrepresented Parties

A

Unrepresented Parties

42
Q

What is an unrepresented party?

A

Any party that does not have an agency relationship with a licensee acting in their best interest, in that transaction

43
Q

Steps you must take before treating a consumer as a unrepresented party

A

1st: You need to have a discussion with your client about dealing with the unrepresented party and seek your clients consent to proceed

44
Q

If your client consents to you proceeding with the unrepresented party then under the Real Estate Services Rules (RESA) you will need to

A

-Inform the consumer of the risks of being unrepresented in real estate transactions

-Disclose the limits to the services as a licensee can provide to an unrepresented party

-Advise the consumer to seek independent professional advise

45
Q

You are required to disclose the risks associated with being an unrepresented party when you are acting for another party in the trade

A

This helps ensures consumers can make informed decisions about whether to be represented by a licensee in a real estate transaction

46
Q

Using the Disclosure of Risks to Unrepresented Parties Form

A

A required form you cannot alter or change

47
Q

Termination of an Agency Relationship

A

Termination of an Agency Relationship

48
Q

How to terminate agency

A

If is a voluntary relationship that is built around mutual consent

Either party can terminate the relationship at will

49
Q

One terminated,

A

Any authority for the licensee to act on the the behalf of the principle will be revoked

50
Q

3 ways in which the agency relationship (and authority) can be terminated

A

1) Express termination
2) Termination by conduct
3) Operation of law

51
Q

1) Express termination

A

The principal or agent can terminate the relationship expressly, orally, or in writing

Sometimes known as the revocation of agency authority

52
Q

2) Termination by conduct

A

An act of the principal that is inconsistent with the continuation of authority can terminate the agency relationship

53
Q

3) Operation of law

A

Through a provision within the agency contract (if one exists), or the death, incapability, or bankruptcy of either the principle or the agent

54
Q

Risks after termination

A

Even thought the agency relationship is terminated, both you and your client may still be bound to certain conduct

55
Q

Many agency relationships are created by express contract

A

Therefore, if an agency relationship is terminated in any way that is not permitted by the contract, the terminating party may still be liable for damages

56
Q

Confidentially and Privacy

A

Confidentially and Privacy

57
Q

Confidentiality and the Real Estate Services Rules

A

Confidential information means any information about a client that is not available to the public

Examples: Clients finances, personal situation, motivations or needs

58
Q

How to give confidential information to third parties

A

You must gather the consent of your client and its best in writing

Information can be revealed if the client gives the licensee the express permission to do so

59
Q

Maintaining client confidentiality includes

A

Ensuring sensitive documents are not shared or accessible to other licensees

60
Q

Privacy an tenants

A

In BC, an individuals information and privacy rights are protected by law

61
Q

PIPA defines personal information about an identifiable individuals, such as

A

-Name
-Date of birth
-Income
-Physical characteristics

62
Q

In most circumstances, you must obtain an individuals consent to

A

Collect and use their personal information

UBC Applied Course (5 decks)

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