Ch9: Agency

Question 1

Agency

Answer 1

relationship between licensee and person they are representing- legal relationship

Question 2

Laws of Agency

Answer 2

common law concept that defines rights and duties of the principal and the agent in real estate transaction

Question 3

Express Agency

Answer 3

signed listing agreement

*required in Co

Question 4

Implied Agency

Answer 4

no formal agreement

actions of licensee

Question 5

Agent

Answer 5

relationship in which a real estate broker owes fiduciary duties to a principal
Agent advocated/negotiates on behalf of principal
*express agency required in Co

Question 6

Advocate

Answer 6

to promote the interests or negotiate on behalf of principal

Question 7

Dual Agency

Answer 7

relationship which real estate broker is an agent for and provides agency duties on behalf of both principals in a single Real Estate transaction
not allowed in Co

Question 8

Fiduciary Duty

Answer 8

set of legal duties which are put in place when an agency relationship between a real estate broker and principal is established

Question 9

Loyalty

Answer 9

real estate broker is obligated to act at all time in the best interest of principal, and place the interests of principal above those of broker

Question 10

Obedience

Answer 10

real estate broker obligated to efficiently and promptly obey all lawful instructions from the principal that conform to purpose of agency agreement

Question 11

Disclosure

Answer 11

real estate broker obligated to disclose to principal ALL relevant and material information known by the broker with respect to the property value and desirability, incl. bargaining position of other party

Question 12

Confidentiality

Answer 12

real estate broker obligated to safeguard the confidential secrets of the principal which includes all information regarding principals motivations and willingness to accept terms other than those offered

Question 13

Reasonable Care and Dilligence

Answer 13

agent is to use a superior skill and expertise when attending to affairs of principal
does not include what is outside of expertise

Question 14

Accounting

Answer 14

real estate agent is obligated to properly account or monies, property, and documents entrusted to agent

Question 15

Imputed Knowledge

Answer 15

premise that confidential info conveyed by the principal to their agent is known by all others in agents brokerage

Question 16

Informed Consent

Answer 16

consent by principal in real estate transaction which is clear that the principal understands all potential consequences-which consent implies in writing

Question 17

Principal

Answer 17

party in real estate transaction to whom the agent owes fiduciary duties

Question 18

Sub-agency

Answer 18

seller-agency relationship extended to other brokers

Question 19

Vicarious Liability

Answer 19

principal is legally reasonable for the acts, misrepresentations, or omission’s of their agent when acting

Question 20

Brokerage Relationships in Real Estate Act of 1994

Answer 20

codify agency law
defined working relationships
defined buyer agency, seller agency, and transaction broker
established general duties, obligations

Question 21

Designated Brokerage Relationships in Real Estate Act

Answer 21

abolished sub-agency and dual agency
limited vicarious liability
established designated brokerage

Question 22

Duties of Agents and Transaction Brokers

Answer 22

Performing terms of contract
Fully informing parties throughout transaction
Presenting all offers and assisting with and contracts including closing transaction
Accounting for monies and properties received before closing
Advising parties to seek expert advice regarding material matters which are known by broker-but specifics beyond expertise of broker