Brokerage Relationship Disclosure Act Flashcards
Who is the principal
The principal - often the seller - is the employer of the agent. The principal can be bound by the actions of an agent acting within the scope of his / her employment (respondent superior)
What is a universal agent - and what degree of authority does this level have
A universal agent can act on behalf of the principal (in this case a seller) in most matters - like a power of attorney - a realtor / sales associate NOR broker has this level usually
What is a General Agent
Empowered to represent principal in all matters pertaining to business (in this case real estate
Is a sales associate the general agent for a principal in real estate
No - the sales associate is a general agent of the broker (who is the general agent of the principal) and the sales associate is a sub agent of the principal
What are the 3 Degrees of Authority
Universal Agent, General Agent, and a Special Agent
What is a special agent / level of authority
Unlike a General Agent, a special agent has limited authority
Ex: a seller’s agent (to represent seller only in a sale)
Broker-Principal Relationship is created how???….
In order to enter into a single agency relationship with a principal, it must be done through written authorization
Fiduciary Relationship in Real Estate
It is created by employment of a broker by a principal in a single agency relationship - sales associates must abide by the same requirements that apply to their brokers (why transaction brokerage relationship created)
Does a transactional broker have a fiduciary responsibility to the principal like a single agent broker relationship does?
No, it is limited representation- Today it is assumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established IN WRITING
