Agency Law

Question 0

Who are the 3 parties in an agency relationship?

Answer 0

Principal
Agent
Customer (3rd Party)

Question 1

Definition of Agency

Answer 1

Legal relationship between client and designated broker to act on behalf and represent client

Question 2

3 types of employment contracts

Answer 2

Listing contracts

Buyer broker agreement

Property management agreement

Question 3

7 duties that an agent has to their principal

Answer 3

1: Confidentiality
2: Loyalty
3: Reasonable skill and care
4: Obedience
5: Accountability
6: Full disclosure
7: Present all offers

Question 4

Definition of client

Answer 4

Person who hires broker to protect and promote their best interest, entitled to fiduciary relationship

Question 5

Definition of fiduciary

Answer 5

A position of trust (only for clients)

Question 6

Definition of accidental agency

Answer 6

Agency created by mistake

Question 7

Name two ways agency can be created

Answer 7

1: Express authority
2: Implied authority

Question 8

Expressed authority?

Answer 8

Written or verbal hire

Question 9

Implied authority?

Answer 9

Created bcus of what a licensee says or does through his words and deeds

Question 10

4 duties we owe to 3rd parties

Answer 10

1: Truthful info
2: No false promises
3: Full disclosure
4: material representation

Question 11

What are the principals 2 duties to 3rd parties?

Answer 11

1: Fair, honest and truthful
2: Sellers property disclosure form