Nat 4 Flashcards
A relationship created when one person hires another to act on his behalf
Agency
Employs the agent
Also known as the client
Principal
Represents the principal and must follow their instructions unless they violate law
Agent
An agent has a ……….duty to the client and must protect and promote the clients interest
Fiduciary
Confidentiality Accounting Reasonable skill and care Loyalty Obedience Disclosure
Fiduciary duties
CARLOD
The agent must keep certain info confidential
Confidentiality
Agent must account to the parties for all monies the agent accepts in the transaction
Accounting
Agent must perform to the high standards set by their profession and knowledgeable in
- Contract preparation
- Marketing efforts
- Advising on prices and market conditions
- Meeting deadlines
- Discovery of facts and defects
Reasonable skill and care
The agent must place the clients instructions above the agents interest
Loyalty
Agent must follow the clients instructions unless they violate the law
Obedience
Agent must make full disclosure to the client of matters that affect the client
- Conflict of interest
- Other offers
- Material defects
- Agency relationship status
- Information material to clients interest
Disclosure
Created by specific authorization from the principal
Expressed agency
Is created by the actions and/or statements of the parties
Implied agency
A person appointed by a broker under authority granted by a client to perform functions on the clients behalf
Subagent
When one or more licensees ina brokerage firm represents both buyer and seller in the same transaction
Dual agency
