Section 4 - Intro to CA Agency Law Flashcards
CA Agency Basics; Fiduciary Duties; Agency Creation & Termination; Agency Relationships in CA (30 cards)
Is agency disclosure required for residential properties?
Yes, but not in cases of residential properties with 5 or more units.
Also required by commercial properties.
One agent represents one client.
SINGLE AGENT
special
An agent who is engaged by a seller to represent the seller’s interests.
SELLER’S AGENT
special
An agent who is engaged by a buyer to represent the buyer’s interests.
BUYER’S AGENT
special
Represent both the buyer and seller in the same transaction.
DUAL AGENT
special
Works under another agent with the principal’s permission to perform some of the acts of agency. Both principals and their agents are liable.
SUB AGENT
special
An agent (possibly from another firm) who works under another agent WITHOUT the principal’s permission. ONLY the principal’s agent is liable.
BROKER’S AGENT
special
Introduces the buyer and seller. This person does not represent either party and performs no other duties.
FINDER OF MIDDLEMAN
non-agent
Assists the tenant in locating and securing an appropriate property to lease.
TENANT’S AGENT
special
Assists the landlord in finding a tenant.
LANDLORD’S AGENT
special
Acts within the scope of the property management agreement on behalf of the landlord.
PROPERTY MANAGER
general
When a licensee has broad responsibility to handle all details of a specific transaction, what type of real estate agency relationship usually exists?
A) Designated
B) General
C) Special
D) Universal
B) General
A general agent has the responsibility of handling all details of a specific transaction. Property managers often serve as general agents.
Which of the following describes a universal agent?
A) Buyer’s agent
B) Conservator
C) Escrow officer
D) Listing agent
B) Conservator
A universal agent has broad authority to act on behalf of the principal, such as a person with a power of attorney or a conservator. A special or specific agent has limited scope of authority.
Someone placed in a position of trust for another.
FIDUCIARY
An agent must carry out a client’s instructions. If, on the other hand a client instructs an agent to do something that is unlawful, the agent can’t obey that instruction. If not resolved, the agent must terminate the agency agreement.
OBEDIENCE
OLD CAR - fiduciary duty principle
Agents must act in their clients’ best interest at all times—above the interests of all others, including the agent’s own
LOYALTY
OLD CAR - fiduciary duty principle
You must disclose all known material facts to all parties.
DISCLOSURE
OLD CAR - fiduciary duty principle
An agent can’t share any information the agent’s client asks to be kept confidential. It also extends beyond closing.
CONFIDENTIALITY
OLD CAR - fiduciary duty principle
You’re responsible for safeguarding any money or documents you receive on your client’s behalf. It may continue even after the transaction closes.
ACCOUNTING
OLD CAR - fiduciary duty principle
Because of the agent’s license, they are presumed to have skill and expertise in real estate matters that are superior to those of the average person. If questions come up that are outside the scope of expertise, the agent’s responsibility under this duty is to refer clients and customers to a competent professional in that field.
REASONABLE SKILL & CARE
OLD CAR - fiduciary duty principle
You and your client agree to and understand the relationship. The agreements may be written or unwritten.
EXPRESS AGREEMENT
An agency relationship may be created without anything in writing, or even without verbal agreement.
IMPLIED AGREEMENT
Acceptance after the fact, sometimes in contrast to a prior agreement. It may occur through contractual paperwork or the parties’ actions.
RATIFICATION
A legal doctrine that says that a person is stopped from asserting rights or facts that aren’t consistent with a previous statement, position, or behavior.
ESTOPPEL
