Chapter 5: Agency Relationships

Question 1

Common Law

Question 2

Components of an agency

Answer 2

CARD:
Control of agent by principal
Acceptance of authority by agent
Reliance on agent by principal
Delegation of authority

Question 3

Subagent

Answer 3

Third party broker (like colton) brought in the work FOR the seller and WITH the buyer

Question 4

Types of agents

Answer 4

Single agency, dual agency, buyer agency, designated broker, transactional broker

Question 5

Designated Broker

Answer 5

Broker appoints someone in their office to represent buyer or seller

Question 6

Buyer agency

Answer 6

Broker represents buyer through written agreement

Question 7

Transactional Broker

Answer 7

Facilitates the transcation but doesnt represent anyone

Question 8

How to create an agency?

Answer 8

Listing agreement or buyer representation agreement

Question 9

Universal Agent

Answer 9

Most authority, can sell your house, buy you cars, etc . all in your name

Question 10

General Agent

Answer 10

Medium authority, you can grant binding things

Question 11

Special Agent

Answer 11

Least amount of authority, you CANT sign binding contracts/agreements

Question 12

Exclusive right-to-sell

Answer 12

If anyone sells the property, doesnt matter who, you still get paid.

Question 13

Exclusive agency listing

Answer 13

If any AGENTS sell the property, you get paid

*The owner still reserves the right to sell the prop theirselves

Question 14

Open Listing

Answer 14

Owner lists the property w multiple brokers, whoever sells the prop first gets paid
*Owner still reserves the right to sell the property their selves

Question 15

Net Listing

Answer 15

Has to do with math, make sure to always divide

Question 16

Listing Agreement

Answer 16

Seller makes a promise to pay agent for finding a property

Question 17

Buyer Representation Agreement

Question 18

Agency by Ratification

Answer 18

acceptance of an act already performed
EX: amy knows of a house thats not for sale but would be perf for the family she is representing. She knocks on door of owner and asks to buy the space.

Question 19

Agency by Estoppel

Answer 19

If a seller allows buyer to believe that a broker is representing the seller and the buyer believes that to be true, then the existence` of the agency cant be denied.

Question 20

Option Listing

Answer 20

The seller gives the OPTION (to ANYONE) to purchase the property within a certain time frame at a pre-detedrmined price. If the person who is interested pays that money, they have the RIGHT NOT OBLIGATED to purchase the property. If option is not execut

Question 21

Commingling

Answer 21

Illegal practice of depositing clients funds into brokers personal account

Question 22

Conversion

Answer 22

If broker uses clients money

Question 23

Puffing

Answer 23

State of opinion that is not factual of property

Question 24

Tort

Answer 24

Violation of legal right/civil wrong

Question 25

Misrepresentation

Answer 25

Making a false statement. (Can be innocent, negligent, or fraudulent)

Question 26

Attorney-in-fact

Question 27

Customer vs client

Question 28

Safety Clause

Answer 28

Clause that protects the listing broker’s commission, if the owner personally sells the property to someone who was shown the property or made an offer during the term of the listing.

Question 29

Procuring Cause

Answer 29

The broker who produces a buyer ready, willing, and able to purchase the property for the price and on the terms specified by the seller, regardless of whether the sale is completed

Question 30

Fiduciary Relationship

Answer 30

Relationship that implies a position of trust or confidence