Agency Flashcards
The fiduciary relationship that exists between the principal and the agent
Agency
Authorizes an agent to handle matters of all types Ex. Power of attorney
Universal Agency
Authorizes an agent to transact matters concerning a specific area of business Ex. P194 Property Manager
General Agency
Authorizes an agent to perform a specific act or to handle a specific business matter for the principal, ex. Real Estate Agent
Special Agency
A formal agreement between the parties, maybe written or verbal
Express Agency
Occurs when the parties act in such a way as to indicate that they have agreed to an agency
Implied Agency
A relationship based on trust and confidence Ex. Principal-agent relationship
Fiduciary Relationship
Fiduciary Responsibilities
Obedience
Loyalty
Disclosure
Confidentiality
Accountability
Reasonable Care
Duties Owed to Customer
Honesty and Truthfulness
Combining clients funds with the broker’s personal and business funds
Commingling
The practice of using commingled funds at the brokers own money
Conversion
Termination of Agency
Death or incapacity of either one
Destruction of property
Expiration of terms
Mutual agreement
Renunciation by the agent or revocation by the principal
Bankruptcy of the principal
Fulfillment of the purpose for which the agency was created
An agency relationship in which the agent is given an interest in the property. Must be disclosed
Agency coupled with Interest
All salespersons and the cooperating broker are subagents of the listing broker
Subagency
Act of representing two principals to a transaction at the same time.
Dual Agency
a hidden structural defect that would not be discovered by ordinary inspection
Latent Defect
Let the buyer beware
Caveat Emptor
Buyer is obligated to compensate the agent whenever the buyer purchases a property of the type agreed upon in the contract
Exclusive Buyer Agency
Broker is entitled to payment only if he or she locates the property the buyer purchases
Exclusive Agency Buyer Agency
Allows the buyer to employ an unlimited number of brokers
Open Buyer Agency
The person whose actions are the primary reason for the sale
Procuring Cause
Giving false information about a property
Misrepresentation
Intentional misrepresentation of a material fact
Fraud
when the agent should have known that a statement about a material fact was false
Negligent Misrepresentation
when the agent accidentally fails to perform some act
Negligent Omission
Exaggerating a property’s benefits
Puffing
Other required Disclosures
Wetlands
Environmental hazards
Asbestos
Radon
