Unit 3: Agency Creation And Termination

Question 1

How to create agency?

Answer 1

With intention and disclosure

Question 2

What are two ways to create an agency relationship?

Answer 2

Express and implied agreement

Question 3

Express agency

Answer 3

When you and your client agree to and understand the relationship

Question 4

How can express agency be done?

Answer 4

Written and unwritten

Question 5

What is an agency agreement?

Answer 5

Listing contract or buyer representation agreement

Question 6

Implied agency

Answer 6

You act on behalf of a consumer in a way where the consumer believes you are her agent

Question 7

Ratification

Answer 7

Acceptance after the fact; sometimes in contrast to prior agreement; may occur through contractual paperwork or parties actions

Question 8

Estroppel

Answer 8

Legal doctrine that says that the person is stopped from asserting rights or facts that aren’t consistent with a previous statement, position or behavior

Question 9

Agency coupled with interest

Answer 9

You hold an estate or interest in a property that’s subject of an agency relationship in which you are an agent

Question 10

Termination of agency (6 instances)

Answer 10

1. Clients goals met
2. Specified term expires
3. Mutual agreement
4. By force of law
5. Client revokes prior to expiration
6. Agent renounces agreement prior to expiration date