CHAPTER FIVE : AGENCY AND NON-AGENCY RELATIONSHIPS Flashcards
___-is the
relationship between what is referred to as the principal and the agent. The principal employs the
agent and the agent carries out certain specified actions in dealing with a third party on behalf of
the principal who has employed them.
Agency
___- AGENCY- an agency relationship in which the agent acts concurrently for both the buyer and the seller
dual agency
____ agent- has full authority over any activity
related to the principal. You may have encountered this when you’ve heard of the concept of
“power of attorney.” In that case, one person has signed a piece of paper that has bestowed another
person with the legal right to act fully in all of their affairs.
Universal Agent - broadest form of agency
has the right
to make medical decisions for the principal! Of course it’s very rare for a person acting in the real
estate industry to be granted these agency powers unless the real estate agent in question was the
principal’s son or daughter for example. As a person in the real estate industry, this is where you
may encounter this type of agency.
___ agent - will be granted full authority over a single property. t is much more
common of a role to see amongst professionals within the real estate industry. One of the most
common jobs for which a general agent is used is for that of a property manager. they might be authorized to sign the lease and dif tasks authorized to do.
General Agent
____ agent. - type of agent that is
most common for a real estate affiliate broker or broker to be. The special agent is one who is only
granted limited authority to act on behalf of the principal.
- For example, most listing contracts will authorize the special agent to conduct
advertising to market the property. All of the business which a special agent may perform on behalf
of their principal should be spelled out in the contract that begins the official business transaction
between a real estate broker and their client.
Special Agent
The most common type of agency that allows a brokerage to sell a client’s property is called a ____
agency. In this instance, a broker will sign a listing agreement with the client, for this example,
let’s use a property owner. The listing agreement will clearly lay out all of the responsibilities that
the broker takes on, as a special agent,
single
____ agency- a real estate affiliate broker or associate broker working under a sponsoring broker. The subagent will work on behalf of the agent who has charged them with the responsibilities, in order
to serve the best interests of the principal. So, while the broker is the single agent who has made
an agreement with the principal, the affiliate broker or associate broker will be tasked with also
fulfilling that agreement in the same way that the broker would, to serve the best interests of the
principal.
sub-agency
In states where dual agency is legal, the dual agency must be disclosed ____. Disclosed dual
agency is what allows a single agent to represent two competing principals while still fulfilling their
fiduciary responsibility.
in-writing.
non agency relationships
____ relationship- In the world of real estate,
a facilitator is sometimes referred to as a transaction broker or a “non-agent.” A better term,
perhaps, would be an intermediary because it connotes a business relationship that does not rise to
the level of the agency relationship. Instead, a facilitator’s interests and efforts are directed towards
successful culmination of a transaction rather than satisfying the best interests of an individual
client
facilitator relationship
a facilitator’s goal and primary responsibility is to ensure that a transaction is completed - the “deal maker”
Their specific responsibilities include providing full
disclosure to both parties in a contract, and protecting the confidences of each party. In practice,
acting as a facilitator may be as simple as getting together the buyer and seller to negotiate a deal.
facilitator
Honesty, Accounting of funds, Reasonable skills, and Disclosure
