Chapter 16 Flashcards
Agency (19 cards)
Three parties in an agency
Principal-seller
Agent-broker
Third Party-buyer
Disclosed Agency
third party knows who the principal is and enters into the contract through the agent
Partially Disclosed Aganecy
third party knows that he/she is dealing with an agent, but doesn’t know who the principal is
Undisclosed Agency
third party believes he/she is dealing with a principal, doesn’t know there is an agent
Fiduciary Relationship
one involving high trust- sometimes also involves expertise
Universal Agency
agent has all power to manage affairs of the principal; family, close friend
General Agency
power is given to agent in only one area; power to manage and operate a branch office
Special Agency
power limited in time, purpose, or geography; broker
Power of Attorney
authorization for agency always flows from the principal to the agent- never the other way around
Attorney in Fact
agent is allowed to act on behalf of the principal
Attorney at Law
has their J.D. and has passed the bar
Fiduciary Duties (4)
Care
Obedience
Accounting
Loyalty
Express Agency
parties formally express intentions and share terms and conditions
Implied Agency
Actions of parties may indicate an agency relationship exists
Consumer Notice
gives consumer understanding of services; consumer must sign before receiving any services from a real estate agency
Dual Agency
same broker represents both buyer and seller
Power of Agency
consensual relationship between principal and agent
Right of Agency
contractual relationship; no longer than 1 year, does not automatically renew
Ratification
if an agent enters into a contract before notifying the principal, but the principal later goes along with the contract, it is as if the principal agreed to it on the initial date
