Chap 11 Flashcards
(6 cards)
1
Q
Agency relationship consists of?
A
The principal (client), agent (broker) and the customer (3rd party)
The essence of the agency relationship is trust, confidence, and mutual good faith
2
Q
What are the 3 types of agency?
A
Universal, general, special/limited agency
3
Q
Law of agency
A
Defines and regulates the legal roles of the agency relationship.
4
Q
General agency
A
Principal delegates ongoing tasks to agent like property manager or broker/agent relationship
5
Q
Special/limited agency
A
Authority to conduct a specific activity after which the relationship terminates like real estate agent/principal relationship
6
Q
Caveat emptor
A
Let the buyer beware - VA is a caveat emptor state
