Brokerage and Law of Agency Flashcards
Licensee
a person who’s authorized to represent and act on behalf of another person
Principal
The client
Fiduciary
a relationship of trust or confidence between the licensee and principal
Agency
a fiduciary relationship between the licensee and principal
Customer
The third party with whom the licensee deals when working on behalf of the principal. The difference between a customer and a client is that a customer isn’t represented.
COALD
Care, Obedience, Accountability, Loyalty, and Disclosure (or Notice)
What is COALD?
An acronym for the agent’s fiduciary duties to a principal
Listing Agreement
an express written agency agreement btwn a seller and a broker
Buyer/Tenant Representation Agreement
express written agency agreement btwn a buyer and a broker
Implied Agency
when the actions of the parties indicate that they mutually consented to an agency
Estoppel
A legal doctrine that basically prevents a person from going back on their word
Intermediary Agency
where a licensee represents both sides of a transaction
Commingling
when an agent or broker mixes escrow funds (earnest money) with personal or business funds
Market Allocation
when competing firms agree to split up an area and agree to refrain from doing business in each other’s territory
Antitrust laws
State and federal laws designed to maintain and preserve business competition
