Chapter 2: Law of Agency Flashcards
To be responsible.
Accountability
The seller or buyer agrees to dual agency before it occurs by indicating the same on the agency disclosure form.
Advance Consent to Dual Agency
Appointing one or more individual agents in a firm to represent only the interests of the seller and one or more different individual agents in the firm to represent only the interests of the buyer when a firm has an “in-house” dual agency situation.
Designated Sales Agent
An agent is obligated to safeguard his/her principal’s lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal’s bargaining position.
Confidentiality
A real estate agent who sells a property. The selling agent may be (1) the subagent or listing agent of the seller; (2) a buyer’s agent; or (3) a dual agent. Also called a selling agent or participating agent.
Cooperating Agent
The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems.
Disclosure
The principle which precludes a person from asserting something contrary to what is implied by a previous action or statement of that person or by a previous pertinent judicial determination.
Estoppel
An actual agency created by written or oral agreement between the principal and the agent.
Expressed Agency
An agreement between members of a trade to exclude other members from fair participation in the trade.
Group Boycott
An agreement to do something or to allow something to happen only after all the relevant facts are disclosed.
Informed Consent
An agent’s duty to place the client’s interest above those of all others, including the agent’s own self-interest.
Loyalty
An agreement between members of a trade to refrain from competition in specific market areas.
Market Allocation
This fiduciary relationship obligates the agent to act in good faith at all times, obeying the client’s instructions in accordance with the contract.
Obedience
Conspiring to establish fixed fees or prices for services or products.
Price Fixing
The degree of caution and concern for the safety of himself/herself and others an ordinarily prudent and rational person would use in the circumstances. This is a subjective test of determining if a person is negligent, meaning he/she did not exercise reasonable care.
Reasonable Care
