Laws Of Agency And Fiduciary Duties Flashcards
Description of agency
Agent represent principal, fiduciary obligation
Fiduciary duties mean
Utmost care, integrity, honesty, loyalty
Acting in fiduciary capacity
Laws of agency
Agency law is found in
Civil Code
Licensee generally acts
As Fiduciary
Principals appoint what
Appointed an agent
Client is considered
Principal
Customer is owed
Owed honesty and fairness
Agent is tied to
Broker
Salesperson responsible to
Broker
Trustee’s relationship of loyalty & trust is to
Trustee and beneficiary, Trustee is fiduciary to the lender, works with lender
Broker may not remain silent to
Concerning material facts
Agent/Broker is not legally proper to
Keep client’s secrets
In a Single agency, agent is
Agent is client oriented
Dual agency is described as
One broker for both buyer and seller, knowledge and consent of both
Dual agency cannot tell buyer what
Cannot tell buyer that seller will sell for less
Dual agency is considered what type of sale
In-house sale with two sales associates
Power of attorney is a form of
A form of agency
Attorney-in-fact means
Must record power of attorney
A written agreement in creation of agency relationships is
The best way
A signed listing agreement makes the agent
A special agent
In an agency relationship, by ratification means
Already acted as agent, actions accepted
Agency is not established by
Voluntary offer, subornation (trickery or deceit, underhanded way)
In an agency relationship, consideration is
Not required
When a broker works for free, this means the agent is a
Gratuitous agent
Unlicensed electrical work that is unknown to licensee makes the agent
Innocent
Subagency means having duty to
Duty to seller only
Seller’s agent means
Agent for seller only, No fiduciary duty to buyer, Cannot reveal confidential information
Listing agent is also considered a
Seller’s agent
How should you present multiple offers
At the same time
Don’t present offer if
Frivolous/bonafide or express instructions
When there is a failed promise, what can happen in court
Civil suit for damages
When someone promises to advertise and doesn’t, what is this called
Actual fraud
Misrepresentation can get charged with
Discipline, civil, criminal charges
Present all written offers
Until close of escrow
Buyer’s agent fiduciary duties are to whom only
To buyer only
Buyer agency requires and
Requires buyer’s consent, No fiduciary duty to seller
When accepting unauthorized deposit
Seller’s agent becomes buyer’s agent for that one act
Damages from broker if acts in
If acts in excess
Buyer’s Agent can present offer to
Present offer to seller and seller’s agent
When should the disclosure of agency disclose
As soon as practicable
What is DEC
Disclose, Elect, Confirm
Agency disclosure form are for which sales and leases
Residential sales and leases for more than 1 year
Using an Agency disclosure form for commercial property, what type of agency should be disclosed
Dual agency must be disclosed on commercial property
Unlicensed investor
Secret profit ok
Licensee must disclose
Relationship, acting as principal
Termination of agency not possible by what form of legal doctrine
By estoppel (form of legal doctrine, prevent someone from denying agency if they already had one)
Completion of task is termination of
Termination of agency
Mutual agreement can terminate
Termination of agency
If Principal revokes agency it terminates
Termination of agency
Liable for damages terminates
Termination of agency
Death of broker or listing expires terminates
Termination of agency
Object of agency is destroyed terminates
Termination of agency
Owner files for bankruptcy terminates
Termination of agency
