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Flashcards in Chapter Ten - Agency Deck (16)
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1

AGENCY

-  The legal relationship between two parties who agree that one party, the agent, will act on behalf of the other paty, the principal, subject to the principal's reasonable direction and control.  

2

General Agent

-  One who has broad authority to represent his principal in a series of transactions of a continuous nature.  

-  Example: property manager

3

Special Agent

-  One who acts with limited authority in conducting a specific task for a principal.  

4

Creation of Agency Relationship

Broker (Principal) - Salesperson (Agent)

-  An agency created between the broker and his salesperson through a written employment agreement.  

5

Client (Principal) - Broker (Agent)

- Seller Agent or Buyer Agent relationships evidenced by a Listing Agreement or Buyer Agency Contract.

6

Duties of An Agent to the Principal

"OLDCAR"

-  Obedience 

-  Loyalty

-  Disclosure: except information obtained through a previous relationship.  

-  Confidentiality

-  Account

-  Reasonable Care and Diligence

 

7

Five Business Relationships

(Consumer Information Statement)

-  Seller's Agent

-  Buyer's Agent

-  Disclosed Dual Agent

-  Transaction Broker

8

Business Relationship Disclosure

-  Buyers, sellers, landlords and tenants must be given a copy of the Consumer Information Statement .

-  All brokerage agreements must contain a statement that the client has received a copy of the Disclosure Statement.

9

Disclosed Dual Agency

-  Dual Agency is a limited relationship where the brokerage firm represents both the buyer and the seller.

-  Requires infromed consent by the parties.

-  Each party will recieve less than full agency representation from the dual agent.  

10

Undisclosed Dual Agency

-  The principal can rescind any transaction procured by the dual agent without showing any injury or loss.

11

Agents Buying from Owner

-  Principal must consent.

 

12

Termination of Agency Relationship

-  Mutual Agreement, Revocation by the principal, renunciation by the agent.

-  Accomplishment of objective.

-  Expiration of agreement.  

-  Death of principal or agent.

-  Bankruptcy of owner.

-  Destruction of property.

13

Power of Attorney

-  Principal = grantor

-  Attorney-in-Fact = agent

14

Broker Compensation

-  Provides a ready, willing, and able buyer under the terms set by the seller.

-  Broker is entitled to fees in the event of buyer or seller default.  

15

Safe Harbor Provisions

3 Requirements fot Independent Contractor Status

  1. Valid real estate license.
  2. Written contract
  3. 90% income from sales.

16

TERMINATION OF LISTING CONTRACT

-  Expiration

-  Death of broker or principal

-  Bankrupty of broker or principal

-  Regulation 

-  Destruction of property

-  Revocation

-  Renunciation

-  Accomplishment of goals