Assignment 4 - Relationship n Duties Flashcards
Types of Agents
1) A general agent
A general agent is authorized by the principal to perform acts associated with the continued operations of a particular job or a certain business of the principal. A property manager, for example, acts as a general agent if authorized to show and rent apartments, collect rents, supervise maintenance and upkeep of the property, handle tenant relations, and perform bookkeeping duties. A sales associate is a general agent of the employing broker.
2) A special agent
A special agent is authorized by the principal to handle only a specific business transaction or to perform only a specific act. If you hire a certified public accountant (CPA) to prepare your tax return and, if necessary, to answer any inquiries from the IRS concerning the tax return, the CPA is acting as a special agent for you (the principal). A real estate licensee may act as a special agent with buyers or sellers. This occurs when the buyer or seller and the brokerage firm enter into a single agent relationship. The broker agrees to represent the buyer or seller with regard to a single business transaction. Not all real estate brokers act as agents of buyers and sellers.
A universal agent
A universal agent is authorized by the principal to perform all acts that the principal can personally perform and that may be lawfully delegated to another. An attorney who manages the trust agreement of a mentally disabled adult is a universal agent for that client (the principal). Duties of the attorney-agent would include, for example, overseeing the principal’s financial affairs, medical care, employment opportunities, and living arrangements.
Historically, much confusion has centered on agency relationships, especially as it pertains to dual agency. A dual agent is defined as one that represents both buyer and seller in the same transaction
Single Agent Duties
Duties for the single agent include:
Dealing honestly and fairly.
Loyalty.
Confidentiality.
Obedience.
Full disclosure.
Accounting for all funds.
Skill, care and diligence in the transaction.
Presenting all offers and counteroffers in a timely manner.
Disclosing all known facts that materially affect the value of residential real property that are not readily observable.
Transaction Broker Duties
The duties of the transaction broker include:
a. Dealing honestly and fairly
b. Accounting for all funds
c. Using skill, care, and diligence in the transaction;
d. Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer
e. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing
f. Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or any other information requested by a party to remain confidential
g. Any additional duties that are mutually agreed to with a party
Changing from Single Agent to Transaction Broker
FLORIDA LAW ALLOWS REAL ESTATE LICENSEES WHO REPRESENT A BUYER OR SELLER AS A SINGLE AGENT TO CHANGE FROM A SINGLE AGENT RELATIONSHIP TO A TRANSACTION BROKERAGE RELATIONSHIP IN ORDER FOR THE LICENSEE TO ASSIST BOTH PARTIES IN A REAL ESTATE TRANSACTION BY PROVIDING A LIMITED FORM OF REPRESENTATION TO BOTH THE BUYER AND THE SELLER. THIS CHANGE IN RELATIONSHIP CANNOT OCCUR WITHOUT YOUR PRIOR WRITTEN CONSENT.
