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AGENCY RELATIONSHIPS AND CONTRACTS > AGENCY RELATIONSHIPS and contracts > Flashcards

AGENCY RELATIONSHIPS and contracts Flashcards

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1
Q

CREATING AGNECY

A

listing, buyer agency and property management create an agency relationship.

PAYMENT OF MONEY DOES NOT

written contract or actions.

To earn a commission, agen must be licensed of transaction - have written compensation and the procuring cause.

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2
Q

Express Agency

A

parties state the contracts terms and express their intention orally or in writing

example - LISTING AGREEMENT

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3
Q

IMPLIED AGENCY

A

actions or conduct of the parties

example: “take this deal. it’s the best one for you”

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4
Q

TYPES OF AGENTS

A

General Agent
Special Agent
Universal Agent

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5
Q

Types of agencies

A

single agency
dual agency
facilitator or transaction broker
Designated agency

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6
Q

Listing agreement

A

personal service contact securing the employment of a brokerage firm to find a ready willing and able buyer

TYPES - 
exclusive right to sell
exclusive agency
open 
and net
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7
Q

Law of Agency

A

Outlines the duties and responsibilities of the principal and the agent

COALD -
LOADS
Loyalty - must be loyal
Obedience
Accountability 
Disclosure - disclosing facts and keep the principal
SKILL/CARE
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8
Q

DISCLOSURE _ LAW OF AGENCY

A

if representing seller - the agent must disclose all if the BUYER is willing to offer more for the property

If representing the Buyer - an agent needs to disclose all DEFECTS and if the SELLER WOULD TAKE LESS FOR THE PROPERTY!!

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9
Q

VALID CONTRACT

A

meets all essential elements and is an enforceable contract
legally and mentally competent and authorized to perform
legally at the age of 18
offer and acceptance(MUTUAL ASSENT OR MEETING OF THE MINDS)
CONSIDERATION
REALITY OF CONSENT

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10
Q

offer must be made by one party

A

OFFEROR

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11
Q

accepted w/out any qualifications or changes by second party

A

OFFEREE

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12
Q

CONSIDERATION

A

promise or something of value

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13
Q

REALITY OF CONSENT

A

contact was entered into with our duress, menace, misrepresentation or fraud.

IF HAVE BEEN TRICKED CONTRACT IS VOIDABLE BY THE INNOCENT PARTY BUT VALID AS THE WRONGDOER

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14
Q

VOID

A

MISSING AN ESSENTIAL AND HAS NO LEGAL FORCE AND EFECT - EX -CONTRACT WAS NOT SIGNED BY THE PERSON WITH THE AUTHORITY TO PERFORM

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15
Q

VOIDABLE

A

IT MAY BE RESCINDED BY ONE OR BOTH PARTIES

CONTRACTS are VOIDABLE by the innocent party if entered into under duress, under the influence, though misrepresentation through fraud , with a minor or with incompetent person.

A CONTRACT WITH A CONTINGENCY THAT CANNOT BE MET MAY BE VOIDABLE.

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16
Q

PAYMENT OF COMPENSATION OR ITS SOURCE DOES NOT

A

CREAT THE AGENCY RELATIONSHIP. A CONTRACT OR THEA CTIONS OF THE PARTIES CREATES THE AGENCY RELATIONSHIP.

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17
Q

EXPRESS AGENCY

A

-when the parties state the contract terms and express their intention, either ORALLY or in WRITING

example LISTING AGREEMENT

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18
Q

IMPLIED AGENCY

A

actions or conduct of parties communicate that there is an agreement

TAKE THIS DEAL , ITS THE BEST ONE FOR YOU!

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19
Q

ELEMENTS OF A CONTRACT

A

OFFER AND ACCEPTANCE
CONSIDERATION
LEGALLY COMPETENT PARTIES
CONSENT LEGAL PURPOSE

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20
Q

SALES CONTRACT

A

expressly state in writing terms of the transfer of real property from the seller to the buyer

ID of SELLER AN BUYER
type of deed conveyed w/ restrictions
price of property/how purchaser will pay
amount of ernest money remedies for breach
provision for real estate taxes, insurance rent
securing loan, inspection, closing, possesion
person property to be left w/ real estate
personal property to seller inters to remove
payment of any special assessments
provision statin time period for acceptance
dated signatures OF ALL PARTIES

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21
Q

EXCULPATORY CLAUSE

A

hold harmless clause that may be found in contacts relieving a party from liability for injuries to another

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22
Q

INDEMNIFICATION CLAUSE

A

a clause in which one party agrees to compensate another for a loss or damage that is sustained

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23
Q

FORFEITURE CLAUSE

A

in a contract would allow the ernest money to be given to SELLER if the buyer defaults

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24
Q

FIDUCIARY RELATIONSHIP

A

legal relationship that creates a position of trust and confidence

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25
Q

REALITY OF CONSENT

A

contact was entered into with out duress , menace, misrepresentation, or fraud

26
Q

VOID

A

when a contract has no legal force

27
Q

EXCULPATORY CLAUSE

A

relieve or excuse a party from liability for injuries of the party - hold harmless clause

28
Q

UNENFORCEABLE

A

oral reals estate contract

29
Q

VOIDABLE

A

CONTINGENCIES WOULD MAKE A CONTRACT

30
Q

TIME OF ESSENCE

A

REQUIREMENT NOT MET THE CONTRACT HAS BEEN BREACHED

31
Q

LISTING AGREEMENT

A

IS NOT A NOTIFICATION THAT MUST BE SENT TO REGULATORY AGENCY

32
Q

ALL COMMISSION CHECKS

A

MUST BE GIVEN TO THE PRINCIPAL BROKER

33
Q

OFFER CAN BE REVOKED

A

AT ANY TIME BEFORE ACCEPTANCE - BECAUSE THE AGENT HAD NO COMMUNICATION OF ACCEPTANCE OF THE SELLER, THE BUYER HAS NO RESPONSIBILITIES FOR THE OFFER ONCE THE REVOCATION WAS COMMUNICATED TO HIS AGENT.

34
Q

A SALES CONTRACT

A

DOES NOT CREATE AN AGNECY RELATIONSHIP

35
Q

VOIDABLE

A

a licensee who withhold or lies about material facts may be guilty of MISREPRESENTATION or fraud and the contract may be VOIDABLE.

36
Q

A licensee may not inflate the sales price in hopes of securing a listing and ten lower the price later.

A

EXAMPLE OF UNETHICAL BEHAVIOR

37
Q

Exclusive Right to sell listing

A

brokerage gets paid even if the seller or someone else finds a house.
gives maximum broker proetection by eliminating procuring cause disagreements

38
Q

Exculisve Agency listing

A

owner retains the right to sell w/o paying a commission
if anyone other than broker obtains the buyer - then the brokerage gets paid
agent would put into MLS and offer a co-op but would be less motivated due to compettion from the seller

39
Q

Open Listing

A

nonexclusive listing
owner may list with more than one broker
listing broker gets paid if she retains the porcuring cause of the sale.
may be terminated at anytime before acceptance of an offer.

40
Q

LISTING AGREEMENT

A

EXPRESS AGREEMENTS - in writing and signed
commission is negotiable on the listing agreement - price-fixing is a voiloation of sherman antitrust act

Agent earns a commision when a ready willing buyer brings an offer that meets all the terms of the sellers listing agreement - EVEN WHEN THE PROPERTY DOES NOT CLOSE

buyer agent would have earned a commision by finding a property that meets all the buyers requirements

price and terms

Specific termination date may not have an automatic rollover.

41
Q

Listing terminates

A

closing of the sale
expiration
mutal recession
death or incapaacity of either brokerage firm - THE DEATH OF THE INDIVIDUAL sales person/ broker assicate does not terminate a listing

destruction of premises - HOUSE BURNS DOWN
bankruptcy of either broker or seller
breach or failure to uphold the agreemnt by either broker or seller

42
Q

PROTECTION CLAUSE - EXTENSION CLAUSE - HOLDOVER CLAUSE - SAFTY CLAUSE

A

PROVIDES BOKER TO COLLET A COMMISSION FOR A CERTAIN LENGHT OF TIME AFTER THE TERMAINATION OF THE LISTING.

43
Q

Valid Contract

A

contains all essential elements is binding on both parties and is enforcable by the courts

44
Q

VOIDABLE CONTRACT

A

apperas to be valid but one party may disaffirm because that party is a minor or was subject to duress, fraud or misrepresntation

45
Q

VOID CONTRACT

A

not enforcebale - beaus it does not contain all esstial elements

46
Q

TENANT -LEASE

A

LESSEE

47
Q

LANDLORD -LEASE

A

LESSOR

48
Q

BUYER - PURCHASE AGREEMENT

A

VENDEE

49
Q

SELLER - PURCHASE AGREEMENT

A

VENDOR

50
Q

BUYER - CONTRACT FOR DEED

A

VENDEE

51
Q

SELLER - CONTACT FOR DEEDN

A

VENDOR

52
Q

MORTGAGE - BORROWER

A

MORTGAGOR

53
Q

MORTGAGE - LENDER

A

MORTGAGEE

54
Q

DEED OF TRUST LENDER

A

BENEFICIARY

55
Q

DEED OF TRUST BUYER

A

TRUSTOR/GRANTOR

56
Q

DEED OF TRUST - 3RD PARTY

A

TRUSTEE

57
Q

DEED BUYER

A

GRANTEE

58
Q

DEED SELLER

A

GRANTOR

59
Q

UNILATERAL & BILATERAL

A

MAIND DIFFERENCE BETWEEN THE BOTH CONTRACTS IS THE OBLIGATIONS OF THE PARTIES

60
Q

ASSIGNMENT -

A

TRANSFERS OBLICATIONS BUT NOT LIABILTY

61
Q

NOVATION

A

NEW CONTRACT REPLACING AN OLD ONE - TRANSFER ALL ABOLICATIONS AND ALL LIABILTIY

62
Q

CONTINGENCY CLAUSE

A

ALLWING THE BUYER TO TERMINATE UNDER CERTAIN CONDTIONS - BUYER WOULD GET EARNES MONEY BACK

AGENCY RELATIONSHIPS AND CONTRACTS (2 decks)

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