Chapter 6: Law of Agency and Real Estate Brokerage

Question 1

Agency

Answer 1

Relationship based on trust between agent and principle

Question 2

Fiduciary

Answer 2

One who acts in a trustworthy role on another’s behalf

Question 3

Universal Agency

Answer 3

Like POA. Can make all decisions for all matters and sign

Question 4

General Agency

Answer 4

Can bind on behalf of another

1. Agent - Broker

Question 5

Special Agency

Answer 5

Most limited type of agency, doesn’t have authority to sign

1. Broker - Seller

Question 6

OLD CAR

Answer 6

Obey, Loyal, Disclose, Confidentiality, Accountability, Reasonable.

Question 7

Customer

Answer 7

Is not a client. No agreement exists. Honest and fair

Question 8

Client or Principle

Answer 8

Written or oral agency agreement exists. Fiduciary

Question 9

Agency can be:

Implied?

Answer 9

Return calls, emails, advertising… All implied actions, no written agreement

Question 10

Agency can be:

Ostensible?

Answer 10

When principal acts as if one is an agent, when there isn’t an actual written or verbal agreement

Question 11

Agency can be:

Ratification?

Answer 11

Agents acts on behalf of principal, and is principal if not present

Question 12

Agency can be:

Coupled with Interest?

Answer 12

When realtor is “Interested” in selling or buying a property they must disclose their connection to the property or that they are a realtor. Also, if such properties are of interest to the children or parents