Agency Basics Flashcards
In an agency relationship, the agent fiduciary duty to the principal to strictly account for all monies received
Accounting
A relationship of trust between one person (the principal) and another (the agent) in which the agent has the authority to act on behalf of the principal. This creates a fiduciary duty on the part of the agent to act in good faith
Agency
One who represents a principal.
Agent
A person licensed under the laws of the state to transact real estate business on behalf of another (acting as an agent). Must have three years of experience
Broker
A buyer or seller - or tenant or landlord - who is represented by an agent
Client (also called Principal)
The protection of the clients confidential information. This duty last even after the agency relationship has terminated
Confidentiality
A party to a transaction who is not a principal
Customer
Any information or report given to a party in a transaction
Disclosure
And entity licensed by the Arizona department of real estate to operate a brokerage business
Employing broker
The obligations of a person in a position of trust who is held by law to high standards of good faith and loyalty
Fiduciary duties
A fiduciary duty that requires a real estate licensee to put the principal’s interests above all others’ interests, including their own
Loyalty
Any fact that is relevant to a person making a decision; agents must disclose these to buyers
Material fact
A fiduciary duty that requires a licensee to follow the (legal) instructions of the principal, obey the parameters of the agency relationship, and not stray beyond the scope of authority
Obedience
The person who gives authority to an agent or attorney, thereby creating a fiduciary relationship
Principal
A fiduciary duty that requires agents to protect clients from foreseeable harm, act in accordance with the high standards set by their profession, and perform their duties as promised
Reasonable skill and care
