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Real Estate Principles & Practices Prep Updated for 20th Edition > Unit 9 Agency > Flashcards

Unit 9 Agency Flashcards

1
Q

What is the law of agency?

A

The rights and duties of the parties in a real estate transaction. Governed by Common law tradition, and statutory law

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2
Q

What is an agent?

A

A person authorized to represent the interests of the principal in the dealings with a third person.

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3
Q

What is a principal?

A

The person who hires the agent, and delegates the agent the responsibility of working.

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4
Q

What is agency?

A

The fiduciary relationship between the agent and principal, where the agent represents the principal.

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5
Q

What is fiduciary?

A

The relationship between the agent and principal where the agent held in a position of special trust and confidence by the principal.

COLD-AC
Care
Obedience 
Loyalty
Disclosure
Accounting
Confidentiality
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6
Q

What is a client?

A

The principal.

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7
Q

What is a customer?

A

A third party nonrepresented consumer. Is not a principal.

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8
Q

What is a nonagent?

A

aka facilitator, intermediary, transactional broker, transaction coordinator, or contract broker assists one or both parties in a-transaction without representing either party

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9
Q

What is express agency?

A

Agreement where the parties formally express their intention to establish an agency and state its terms and conditions, written or oral.

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10
Q

What is implied agency?

A

When the actions of the parties indicate that they have mutually consented to an agency.

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11
Q

What are the duties of a fiduciary relationship?

A 
Care
Obedience
Loyalty
Disclosure
Accounting
Confidentiality
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12
Q

What is care?

A

The use of skill and knowledge in the service of a client.

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13
Q

What is obedience?

A

Following the requests of the principal within the law.

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14
Q

What is loyalty?

A

The principals best interest are at heart even over the intersts of the agent.

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14
Q

What is accounting?

A

The ability to report the status of all funds received.

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15
Q

What is disclosure?

A

Keeping the principal informed about material facts, and things the agent knows or should have known.

17
Q

What are the 3 types of agency?

A

1-Universal Agent
2-General Agent
3-Special Agent

17
Q

What is an universal agent?

A

Person empowered to do anything the principal could. POA

18
Q

How is agency terminated?

A

1-Completion, performance
2-destruction or condemnation of property
3-expiration of the terms of agency
4-mutual agreement of all parties in the contract
5-breach by one of the parties
6-operation of law

agency coupled with an interest doesn’t automatically terminate agency (agent has ownership)

19
Q

What is a general agent?

A

Representation of a principal in a broad range of matters related to a particular business or activity.

20
Q

What is a special agent?

A

Limited agent, authorized to represent principal in act or business transaction only.

21
Q

What is single agency?

A

Agent represents only one party in any single transaction.

22
Q

What is a designated agent?

A

aka Designated representative Someone the broker appoints to represent a specific principal.

24
Q

What is dual agency?

A

Agent represents two principals in the same transaction. with informed consent of both principals.

25
Q

What is required in customer level services?

A

Reasonable care
Honest and fair dealing
Disclosure of facts that will materially affect the value or desirability of a property.

R-H-D

26
Q

What is the difference between puffing and fraud?

A

Puffing is an exaggeration, while fraud is intentional misrepresentation.

27
Q

What is negligent misrepresentation?

A

When a broker should have known that a material fact was false.

28
Q

What is a latent defect?

A

A hidden structural defect that would not be discovered by ordinary inspection.

29
Q

Who is a subagent?

A

Authorized to work with the agent on behalf of a client

30
Q

Does the source of compensation determine agency?

A

No

31
Q

What is gratuitous agency?

A

Agency relationship even when zero compensation is involved.

32
Q

True or False

Undisclosed dual agency can result in the recision of a contract, or forfeiture of commission or more?

A

True

33
Q

In some states what additional responsibility does an agent have for latent defects?

A

Has an independent duty to conduct a reasonably competent and diligent inspection of the property.

34
Q

What should an agent to about a stigmatized property?

A

Consult an attorney.

Real Estate Principles & Practices Prep Updated for 20th Edition (23 decks)

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