General - Chapter 4 Lesson 5 Flashcards
(50 cards)
The most desirable way to create an agency relationship between a real estate brokerage and a client
written brokerage agreement (express agency)
Sellers secure the services of a broker through a…
listing agreement
Buyers secure the services of a broker through a…
buyer agency agreement
Property owners secure the services of a licensed property manager through a…
property management agreement
A person who hires another individual to act for them is called the:
Principal
How it could end…
accomplishment of purpose, expiration, operation of law, mutual agreement, renunciation by the agent, revocation by the principal
Sometimes the termination of an agency results in…
breach of the agency agreement
Accomplishment of Purpose
Most common, purpose was accomplished and no more need
Expiration
term expires without successful conclusion
Operation of Law
Principal dies or seriously incapacitated
Broker dies or incapacitated (affiliated licensee dies, it doesn’t matter)
Seller declares bankruptcy
Brokerage firm declares bankruptcy
Brokerage firm loses its license
Property is destroyed
Property condemned
Eminent Domain
Government’s constitutional power to take private property for public use, as long as the owner is paid just compensation. Condemnation is the action; eminent domain is the right
Mutual Agreement
If both parties agree to terminate the relationship, they can at any time
Renunciation
occurs when someone who has been granted something or has accepted something later gives it up or rejects it
Agent can renounce (quit)
at any time, but they may be liable for any damages caused by the renunciation
Revocation
occurs when someone who granted or offered something withdraws it
Firing
Principal can usually revoke the agency relationship w/o liability
Renunciation/Revocation
even if circumstances seem clear, there’s a possibility that the issue could end up in court
Agency coupled with an intrest
agent holds an ownership interest in the property being sold
ROAMER
Renunciation
Operation of Law
Accomplishment of Purpose
Mutual Agreement
Expiration
Revocation
Most likely to cause breach of contract
Renunciation and revocation
Broker Harold of Ace Realty has a listing with seller Stella. The ideal way for this agency relationship to end is if Harold finds a buyer for Stella’s property.
True - ideal
Agent Hans has a 120-day listing contract with Gretel to sell her cottage. Gretel had hoped that Hans would find her a buyer quickly so that she could avoid declaring bankruptcy, but that is not the case. With 20 days left in the listing period, Gretel declares bankruptcy. Does this terminate their agency agreement? If so which way?
Yes - operation of law
Agent John has a 60-day listing agreement with seller Sue. The agreement states that John will market the property in multiple outlets and schedule three open houses. John puts a sign in the yard but does not advertise or submit the listing to the multiple listing service. Sue feels abandoned and terminates the listing agreement. This is an example of renunciation.
False - revocation
Andy, an affiliated licensee at Big Top Realty has a listing agreement with seller Sylvia. When Andy dies, their agency relationship is terminated by operation of law.
False - contracted w/ brokerage not agent
