Law of Agency Flashcards
TRELA established when?
1939
TREC established when?
1949?
REALTOR
is a licensed sales agent who is a member of the National Association of REALTORS® (NAR
four major types of agency acts:
listing, buying, property management, leasing
These are the four components required to form an agency relationship
Agent
Principal
Mutual agreement
Fiduciary obligation
agency by actual authority
refers to actions an agent has been authorized to complete on behalf of a princcipal
2 types of authority
express and implied
agency by ratification
is when a license holder acts without authorization on behalf of a principal and the principal accepts those actions after the fact, thus affirming the actions taken and creating retroactive agency.
ostensible agency
occurs when a principal allows a license holder to act in such a way as to cause a third party to believe that license holder is the principal’s agent.
agency by estoppel
is agency that is imposed by law when it is determined that ostensible agency existed.
agency coupled with an interest
When a license holder is participating in a real estate transaction for which they have a personal interest,
types of agencies
general, special, universal
IABS informs clients of:
a broker’s minimum duties required by law; how a license holder can represent a party in a real estate transaction, the types of real estate license holders
SDN
Sellers disclosure notice
3 types of misrepresentation issues:
innocent, negligent, fraudulent
3 types of disclosure
required disclosures, permitted disclosures, unlawful disclosures
If the seller does not provide the buyer with a completed Seller’s Disclosure Notice before signing the contract, the buyer has a legal right to:
terminate the contract within 7 days of receiving the notice
defect
is an item that was installed or is attached to the home that has an imperfection.
malfunction
is when something is designed or built to perform a certain function and no longer does so.
Guerrero v. Sanchez
stigmatized properties should be disclosed
types of listing agreements
open listing, net listing, exclusive agency, exclusive right to sell listing
open listing
multiple real estate brokers (and the owners themselves) have the right to sell the property
net listing
the broker’s commission comes from the difference between the seller’s established minimum price and the price that the buyer is willing to pay. legal in texas
exclusive agency
the seller agrees to list their property with only one broker during the listing term. However, the seller still has the right to sell the property themselves, without having to pay the broker a commission (or they can agree to a reduced commission