Role in Agency Relationships Flashcards
All agency relationships are created at which level?
All agency relationships are created at the broker level.
The salesperson derives his or her responsibilities from whom?
The salesperson derives their responsibilities from his or her broker.
What does an agency relationship allow a broker to do?
An agency relationship allows a broker to perform tasks necessary to meet the needs of the client, such as to advertise the seller-client’s home or to show homes to a buyer-client.
In any real estate transaction, what is the best way to turn a customer into a client?
The best way to turn a customer into a client is by written agreement - a listing agreement with a seller or a buyer’s representation agreement.
A general agency exists between the broker and the salesperson. If the salesperson violates the licensing act, who besides the salesperson would also be held responsible?
The salesperson’s broker would also be held responsible for the violation.
If a licensee leaves his or her broker, how many listing agreements and buyer agency agreements is the salesperson allowed to take to the next broker?
Because the broker owns all agency agreements, the salesperson would not be allowed to take any of these agreements to the next broker.
If a broker has a multitude of tasks to perform for a client, the broker would be considered which type of agent?
In this situation, the broker would be a general agent.
Written agreements and oral agreements can be express agency as long as the relationship has three key components. What are these components?
These three components are clear, concise, and understandable.
In real estate agency, which term is interchangeable with principal?
The term “client” is interchangeable with principal.
What is required to turn a customer into a “client or principal?”
A written and signed agency agreement (listing agreement or buyer’s agency agreement) is required to work with a client or principal.
A buyer that has signed a buyer’s agency agreement with the broker will now receive services from the broker until what point of the transaction?
The broker will represent the buyer from the time of signing of the agreement through the closing of the transaction.
Just by actions of the licensee, what can be created?
Agency representation can be created through actions of the licensee.
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A broker may enter into an agreement to work for free. Which type of agency does this create?
This type of agency is a gratuitous agency.
Agency by ratification is also known as what?
Agency After the Fact
Which of the parties in a buyer’s agency agreement makes the ultimate decisions?
The buyer-principal always makes the final decisions.
What must a broker obtain to represent a party as an intermediary?
The written consent of each party to the transaction.
Licensee
Someone who is licensed in Texas as a salesperson or broker
Agent
A broker who has an agency relationship with a seller, buyer, landlord, or tenant; a licensee who has an agency relationship with an employing broker
SubAgent
A licensee who is not affiliated with the client’s broker, but who represents the client as a cooperating broker
Broker Licensee
A person who is licensed as a broker in Texas
Sponsoring Broker
A person who has responsibility for the real estate activities of a salesperson or another broker working under him or her (also known as an employing broker)
Salesperson Licensee
A person who is licensed as a salesperson in Texas
Seller’s Agent
A broker licensee who represents the seller in a transaction (also known as the listing agent)
Buyer’s Agent
A broker licensee who represents the buyer in a transaction (also known as the selling broker or cooperating broker)
Intermediary
A broker licensee who works for both the seller and the buyer in the same transaction (a special agency alternative allowed in Texas)
Client
A person being represented in a real estate transaction (also called the principal)
Customer
A person who gets some brokerage services but does not have an agency relationship with a broker
A major component of real estate
is the relationship between the principal (also known as client) and the agent (also known as broker).
When a broker has a relationship with a client
the broker has fiduciary duties that must be performed on behalf of the client. All focus must be on their client.
The broker is
legally the agent of the client
Licensees derive their responsibilities from their broker
Generally, these responsibilities are to find buyers and sellers for property, explain agency relationships, and enter into agency agreements.
When a broker has an agency relationship with someone
he or she has the authority to act for that person. The broker is now allowed to perform tasks necessary to meet the needs of the client, such as to advertise the seller-client’s home or to show homes to a buyer-client.
The best way to turn a customer into a client
is by filling out a listing agreement form or a buyer representation form:
General Agency
The type of agency created between the broker and salespeople
Special Agency
The agency relationship between the broker and clients
Agency normally not found in a real estate office
universal agency. In this type of agency, a person or court would give an agent full control over someone’s life and belongings to meet a specific need.
Express Agency
is the best type for both the broker and the client, where everything is very clear, concise, and understandable. This can be a written or oral agreement.
Implied Agency
When a salesperson says or does something that creates agency such as giving advice to a customer, giving an opinion to a customer, or negotiating on the customer’s behalf
A seller who lists with a broker
is not a client to all real estate licensees. The seller is only a client at the office where the listing was placed.
buyer who is represented by a broker
is not represented by all brokers,but rather only by the broker with whom the buyer formed the agency relationship.
When a buyer becomes a client of the broker,
a higher level of service will be provided by the real estate professional.
most important task a broker needs to perform with the seller-principal
give a market analysis of what the property is worth
Agency Can Be
created through the actions of the licensee
A type of agency that is similar to implied agency is ostensible agency
This occurs when a court declares that the licensee was acting like an agent.
Gratuitous agency
There are times when a broker may choose to work for free, such as selling his or her mother’s home
