Unit 9 Flashcards
What is the principal in the law of agency
the person who hires another to act on their behalf
Who can be the principal in a real estate transactions
buyer
seller
landlord
tenant
Who is the principal in dealing with sales associates
the broker
What does the agent owe the principal
fudiciary duty
What does the agent owe third parties
honesty
fair dealing
What type of agency relationship provides services but doesnt provide representation of the client
facilitators/transaction brokers
What are some examples of a facilitator/transaction broker relationship
providing contracts to use in a transaction
listing a property on the MLS and specifying that the buyer is representing themselves
What are the common law fiduciary duties
obedience loyalty disclosure confidentiality accounting reasonable care and skill
What is obedience
have to obey lawful requests
What is loyalty
the clients interests must be placed above all others
What is disclosure
disclose about known material facts must be disclosed to all parties (buyers, sellers, etc.)
and any knowledge beyond material facts must be disclosed to your client
What is confidentiality
must keep your clients confidential information private
What is an example of confidential information that needs to be kept private
price
terms
motivations
(PTM)
What is accounting
your accountable your any monies entrusted to yuo
What is reasonable care and skill
your suppose to know more about the real estate transaction process better than the public
What is an agents duties to third parties
disclosure
accounting
honesty and fair dealing
What is an example of a disclosure need to be given to a third party
an agency disclosure, stating who I am and who I represent
also known material facts
Do you still need to disclose material facts when the property is being sold “as is”
yes
What are the levels of scope of an agents authority (from largest scope to smallest)
universal
general
special
What is the scope of special agency
can perform specific acts but cannot bind the principal with a contract
What are examples of special agency
you cant sign a contract, accept an offer, but help me sell/buy/find a place to rent
listing brokerages to the seller
buyer brokerage firm to a buyer
What is the scope of general agency
able to perform ongoing acts on behalf of someone with limited ability to bind contractually
Examples of general agency
a associate liscencee with a brokerage firm
listing aggreements
buyer/tenant representation agreements
property manager to owner
can a licensee be a property manager
no, only a brokerage firm
What is the scope of universal agency
performs in place of the principal, unlimited ability to bind the principal
What is an example of universal agency
power of attorney
What express agency
created by written or oral agreement
What is implied agency
created based on the parties behavior
In a real estate transaction, does the source of compensation determine the agency?
no
What type of agency is a real estate associate to a broker
single agency with the broker as the principal
What is a designated agent
when two agents working for the same broker represent the buyer and the seller, the broker will “designate which agent will represent who”
What is a nonagent (transaction broker)
no duties to either party
just helps both with the formalities of transfering a propertyy (ministerial acts)
Reasons an agency could be terminated
death or incapacity of either party
expiration of the agency terms
mutual agreement by both parties to end their contract
completion of the purpose of the agency
What is an example of a mandatory disclosure that agents need to make
presence of lead based paint
What are some disclosures that a seller typically needs to make
known strutural defects
violations of zoning or building codes
What are latent defects
defects that wouldnt be found by normal inspection
What law requires that sex offenders and child kidnappers register there location of residency
Megans Law
