Chapter 1. Agency Relationships and Contracts Flashcards
Express Agency
When the parties state the contract’s terms and express their intention, either orally or in writting.
What creates an agency relationships?
The listing, buyer agency, and property management agreement.
Implied Agency
When the actions or conduct of the parties communicate that there is an agreement.
General Agent
When the principal delegates a broad range of powers, and the relationship is expected to be on-going.
Special Agent
When the principal delegates a specific act or business transaction.
Universal agent
A party is given full power of attorney to represent another person.
Single Agency
When a broker represents the seller or the buyer in the transaction, but not both
Dual Agency
When an agent represents two principals in the same transaction.
Facilitator or transaction broker
One who does not represent either party in a transaction. Both parties are treated as customers in the transaction
Designated Agency
Created when an agent is appointed by a broker to act for a specific principal or client.
Fiduciary Relationship
Position of trust and confidence
Listing Agreement
Personal service contract securing the employment of a brokerage firm to find a ready, willing, and able buyer.
Responsibilities of an Agent
COALD Care Obedience Accountability Loyalty Disclosure
Care
A broker is to exercise reasonable care and skill as a professional while transacting the business of the principal.
Obedience
The agent is to act in good faith and obey the principal’s instructions given in the contract
Accountability
The agent is accountable for all funds or property of others that come into agent’s possession.
Loyalty
The agent must be loyal, putting the principal’s interests above those of all others.
Disclosure
The agent must keep the principal informed, disclosing all facts and information that could affect the transaction.
Ministerial Acts
Acts that a licensee may perform for a consumer that are informative in nature and do not rise to the level of active representation.
Unilateral contract
Only one party is obligated to perform