Agency Flashcards
(25 cards)
What is an agency relationship?
A fiduciary relationship where one party (agent) acts on behalf of another (principal) under their authority.
Who is the principal in real estate?
The client who authorizes the agent to act on their behalf.
Who is the agent in real estate?
The broker or salesperson authorized to represent the client (principal).
What is fiduciary duty?
A legal obligation to act in the best interest of another party (the principal).
Name the six fiduciary duties owed to a principal.
Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care (OLDCAR).
What is dual agency?
When a broker represents both the buyer and seller in the same transaction.
Is dual agency legal in New York?
Yes, but only with informed written consent of both parties.
What is disclosed dual agency?
Both buyer and seller give informed consent for the agent to represent both parties.
What is designated agency?
A broker assigns different agents within the same brokerage to represent the buyer and seller separately.
What is a special agent?
An agent authorized to perform one specific act or transaction (typical in real estate).
What is a general agent?
An agent with broad authority to act in ongoing matters (e.g., property manager).
What is an implied agency?
Created through the actions of parties rather than a written agreement.
What is an express agency?
Created through explicit oral or written agreement.
What is a subagent?
An agent who assists another agent in carrying out duties for the principal (in NY, subagency is rare and requires consent).
What is an agency disclosure form?
A written form explaining agency relationships, required at the first substantive contact in New York.
What does “first substantive contact” mean?
When a discussion about specific real property occurs (e.g., price, terms, motivation).
What is customer vs. client?
A client is in an agency relationship; a customer is owed honesty and fairness but not fiduciary duties.
What duty survives after agency ends?
Confidentiality — the agent must keep the principal’s confidential info private even after termination.
What terminates an agency relationship?
Completion of purpose, expiration, mutual agreement, revocation, renunciation, death, or incapacity of parties.
Can a principal revoke agency?
Yes, but they may be liable for breach of contract.
What is vicarious liability?
When a principal is liable for actions of their agent.
What is a listing agent?
The agent who represents the seller.
What is a buyer’s agent?
The agent who represents the buyer.
What is a fiduciary?
A person legally required to act in another’s best interest (the agent is a fiduciary to the principal).
