Chapter 11 - Agency Flashcards
A Principal can be what four things?
Buyer
Seller
Landlord
Tenant
A Agent is the ______
Broker
The Subagent is the ________
Salesperson
The definition of Agency
one person called the principal empowers the agent to person a service
The person a agency relationship empowers is called the…..
Principal
The person or entity who has been empowered to perform
The Agent
y The person under “the agent” who has been empowered to person a service
The Sub-Agent
Fiduciary duties in a agency relation are owned to whom?
The Principal or Client
Vicarious Liability
The Broker is responsible for the actions of the agent
Expressed Agency
Say it or in Writing
Implied Agency
When you lead someone to believe you represent them by your actions
Ostensible Agency
When a third party gets involved but they don’t know they are responsible
Universal Agency
Agent is empowered to do everything
ex. Power of Attorney
General Agency
Agent is empowered to specific duties
ex. Property Manager
Special Agency
Agent is empowered to do one thing
The agency relationship is defined by
The laws of agency
Client Vs. Customer
Client is a person you represent and owe fiduciary duties to
Customer is a third party who you have no agency with
Three things you owe a Customer
- Honesty and Fairness
- Exercise reasonable care and skill
3, Disclosure any known hidden defects
Latent Defect
Hidden defects which must be disclosed if they are known
Patent Defects
Visible and must be disclosed if they could be missed
Eight Ways to Terminate a Agency Relationship
BADDMICE
Bankruptcy of either party Abandonment (walk away from the relationship) Death of either party Destruction Mutual Agreement Incompetence (deemed by court) Completion Expiration
Puffing
Legal exaggeration when describing a property
Caveat Emptor
Buyer is responsible for the due diligence
Single Agency
When the agent represents one side of the transaction
