Law of Agency and Agency Relationships

Question 1

What is Agency?

Answer 1

Describes the relationship between the real estate professional and and persons being represented.

Question 2

What is law of agency?

Answer 2

describes the rules surrounding the relationship

Question 3

who is and Agent?

Answer 3

is someone who acts on someone else’s behalf, at that person’s request

Question 4

what is fiduciary?

Answer 4

person or organization that acts on behalf of another person or persons, putting their clients’ interests ahead of their own, with a duty to preserve good faith and trust.

Question 5

What are the 2 meanings of Principal?

Answer 5

A Client
A party to a transaction

Question 6

What is a customer?

Answer 6

is someone with who an agent doesn’t have an agency agreement, but who is still a principal to a transaction

Question 7

What is non-agent or transactional broker?

Answer 7

doesn’t engage in agency relationships. She can assist customers with ministerial tasks but must not provide any kind of information that isn’t strictly fact-based.

Question 8

What is a Special or limited agent?

Answer 8

The special agent’s authority is limited to this specific duty and once it is completed, the agent’s legal responsibility to the client is completed as well.

Question 9

What is designated agent?

Answer 9

a licensee whom a brokerage’s broker appointed to represent one party in an in house transaction.

Question 10

What is a broker’s agent?

Answer 10

assist but do not represent the buyer; work for another firm and are sub agents of the listing broker

Question 11

What is General Agents?

Answer 11

responsible for all aspects of a specific piece of a client’s property. his role exists in the property management realm, ollect rent, evict tenants, and enter into leases with tenants on behalf of property owner clients.

Question 12

What is non-agent?

Answer 12

doesnt represent the buyer or seller, isn’t a fiduciary and can provide only limited services to facilitate the transaction
he assists either one or both parties with clerical or ministerial tasks

Question 13

How are agency relationships created?

Answer 13

through express agreement or implied agreement

Question 14

What is ratification?

Answer 14

in an implied agency ratification of the agreement can occur if the client signs an agency agreement form. This turns the implied agency into express agency.
Not doing so can make the agent liable

Question 15

OLD CAR in Fiduciary stands for

Answer 15

Obedience, Loyalty, Disclosure, confidentiality, accounting
Reasonable skill and Care.

Question 16

What is Employment/Representation Agreement?

Answer 16

is a term to a listing agreement or buyer brokerage agreement
It authorizes a broker to assist a consumer in purchasing or selling real property in exchange for a commission or compensation.
It identifies what agents will do for clients, and what clients agree to do for agent

Question 17

What is procuring additional agreements?

Answer 17

Entering into a contract with a buyer/ seller who is already under contract with another licensee