unit 9 Flashcards
Parties in an agency relationship are:
Principal: one who employs another to act on their behalf
Agen/fiduciary: one who is employed to represent the principal
third party: a party to a transaction who is not a party to the particular agency contract
Facilitator: one who provides service not representation
What does the common law agency do?
specifies fiduciary duties to principal (OLD CAR)
What does old car stand for?
Obedience loyalty disclosure confidentiality accounting reasonable care and skill
what is obedience?
an agent must obey the lawful directions of the principal
what is loyalty?
an agent must place the interes t of the principal above all others
what is disclosure?
disclose to the principal and all parties all known material facts about the property
What is confidentiality
must keep price, terms and motivations confidential forever
What is accounting?
account for any money or personal property entrusted to agent
When do you need to tell clients to not share confidential information with the agent?
at first substantive contact
What is a Special agency?
the agent is authorized to perform a particular act without the ability to bind the principal contractually
listing brokerage firm to seller
buyer brokerage firm to buyer
What is a general aggency?
the agent is authorized to perform a series of acts associated with the continued operation of a particular business
salesperson or broker associate to employing broker
What is a universal agency?
the agent is authorized to perform in place of the principal the agent has unlimited ability to bind the principal
Most states require an agency relationship disclosure form be provided to the consumer at
first substantive contact
Where do you put OPM?
Other peoples money or trust funds go into a trust account
what is an OPM or Trust fund?
earnest money, rents, and security deposits
