Laws of Agency

Question 1

COMMON LAW

Answer 1

Cases decided by the Court

Question 2

STATUTE

Answer 2

A written law passed by a legislative body

Question 3

ASSOCIATED LICENSEE

Answer 3

Under a Broker-in-Charge or Property Manager

Question 4

AGENT aka PROXY

Answer 4

One hired to represent another

Question 5

LISTING AGREEMENT

Answer 5

How Sellers hire real estate Brokers

Question 6

REPRESENTATION AGREEMENT

Answer 6

How Buyers hire real estate Brokers

Question 7

PRINCIPAL/CLIENT

Answer 7

One who contractswith another for representation, advice & counsel

Question 8

DISCLOSED PRINCIPAL

Answer 8

(disclosure required by common law) Agency Relationship & Indentity of Principal

Question 9

PARTIALLY DISCLOSED PRINCIPAL

Answer 9

(buyer who needs anonymity) Disclose only Agency relationship; not Indentity of Principal

Question 10

THIRD PARTY/CUSTOMER

Answer 10

The person the Agency is doing business with while representing Principal

Question 11

AGENCY RELATIONSHIP

Answer 11

Agent is hired by Customer to represent him

Question 12

CUSTOMERS

Answer 12

Using services without a Agency Relationship; no written agreement

Question 13

COMMON LAW OBLIGATION TO THIRD PARTIES

Answer 13

Honesty & fair dealing; due care, knowledge & skill

Question 14

COMMON LAW OBLIGATIONS TO THIRD PARTIES

Answer 14

Material Adverse Facts

Question 15

TRANSACTION BROKER

Answer 15

Provides Customer Service

Question 16

FIDUCIARY

Answer 16

Having the duty to act for another’s benefit. Based on mutual trust & confidence

Question 17

AGENCY DUTIES (state laws)

Answer 17

OLDCAR acronym: Obedience, Loyalty, Disclosure, *Confidentiality, *Accounting, Reasonable Care & Diligence