Agency Basics Flashcards
(38 cards)
What is agency?
Agency is the relationship between a principal and an agent, where the agent acts on behalf of the principal.
Who is the principal in an agency relationship?
The principal is the buyer, seller, lessor, or lessee hiring the agent to represent them in the transaction.
Who is considered a client in real estate?
A client is a person or entity with whom a real estate professional has an agency relationship.
What is limited agency?
Limited agency is a situation in which an agent represents both the buyer and seller.
What is dual agency?
Dual agency is a situation in which an agent represents both the buyer and seller.
What is implied agency?
Implied agency is an agency relationship created when an agent gives advice, guidance, or counsel, leading the principal to rely on the agent.
What is express agency?
Express agency is an agency relationship created by a written or oral agreement between the agent and principal.
Who is the listing agent?
The listing agent is the agent representing the seller.
Who is the buyer’s agent?
The buyer’s agent is the agent representing the buyer.
Who can enter an agency relationship in Utah?
In Utah, the only person with authority to enter an agency relationship with a member of the public is a broker.
What is designated agency?
Designated agency occurs when the principal broker hires other agents to exclusively represent specific clients.
What is a fiduciary relationship?
A fiduciary relationship is when an agent is obligated to act in the best interests of the client above all else, including their own self-interest.
What is a customer in real estate?
A customer is a person who uses the services of a real estate professional but hasn’t entered into an agreement with an agent.
What is a fully disclosed principal?
A fully disclosed principal is one whose identity is known to all parties involved.
What is a partially disclosed principal?
A partially disclosed principal is one whose identity is known only to the agent.
What is an undisclosed principal?
An undisclosed principal is one whose identity is not disclosed to anyone.
What is specific agency?
Specific agency is an agency relationship where the agent is hired to perform a specific task.
What is general agency?
General agency is an agency relationship in which an agent is hired to fill a specific need using their expertise.
What is universal agency?
Universal agency is when the agent is authorized to act on behalf of the principal in business of every kind.
What is a power of attorney?
A legal document where the principal gives the agent/attorney-in-fact power to manage the principal’s assets or financial affairs while the principal is alive.
What is a specific power of attorney?
A written authorization to act on another’s behalf under specific, limited circumstances.
What are subagents?
The agents that the principal broker/branch broker hires to assist in representing buyers and sellers.
What are minimum services in real estate?
The minimum duties that agents owe to their principal, which in Utah covers three specific areas: preparing documents, presenting offers, and overseeing the accuracy of closing documents.
What is a contingency in a contract?
A term that has to be met in order for the contract to move forward, commonly including events such as the ability to finance the purchase or sale of the home.
