General Principals of Agency 3

Question 1

What are the 6 Duties Owed?

Answer 1

Reasonable Skill and Care

Obedience

Loyalty to their client

The Disclosure of the property condition and transaction

Accountability

Confidentiality

Question 2

What is Care?

Answer 2

Care: The agent must exercise a reasonable degree of care; liability can result from negligence or carelessness.

Question 3

What is Obedience?

Answer 3

Obedience: The agent must act in good faith and according to the principal’s instructions (as long as those instructions are legal and relative to the terms of the contract).

Question 4

What is Loyalty?

Answer 4

Loyalty: The principal’s interests must come before the agent’s; 100% loyalty is required.
The agent must inform the principal when purchasing the property for himself or herself and/or when selling his or her own property to the principal.

Question 5

What is Disclosure?

Answer 5

Disclosure: The agent must keep the principal fully informed of all facts, including those required by the duty of discovery.

Question 6

What is Confidentiality?

Answer 6

Confidentiality: The agent must keep information about the principal’s personal affairs, such as financial condition, confidential. However, agents must disclose material facts about the property itself.

Question 7

What is Accounting?

Answer 7

The agent is accountable (responsible) for all funds and property that their client has an interest in whether it’s personal information, like their social security number, or personal property (the remotes to their garage).
In addition, the agent must account for all legal documents by providing their clients with anything they have signed at the time of signing, and keeping documents on file for the period of time prescribed by law.