Unit 5-1: Consumer relationships Flashcards
Statute law
laws passed by either federal or provincial govts
Common law
laws made by the courts based on precedents
Quebec system
Civil law used instead of common law; highly structured and rigid code of rules enforced by prov court
Real estate relationships
Non-representation or representation
Non-representation
RE prof. not acting on behalf of that party (client is then known as a customer)
Can only provide factual information, admin support - cannot provide opinions or advice or advocate on their behalf
Representation
Acts for the party involved in the trade - called client
Administrative duties to agreements
Customer acknowledgement form
non-rep relationship; goes to brokerage
Written service agreement
rep. relationship; client
specific services to be rendered
goes to brokerage
5 Ds of Role Clarity and Consistency
Discuss
Determine
Document
Disclose
Do
Types of consumers
Represented with different brokerage
Client already represented by same brokerage (if other party being represented already)
Chooses to be unrepresented
General obligations to consumers
exercise care and skill
act honestly
Liability for customers
if fail to disclose role to them
no authority for acting
causing tort (civil wrong)
Non-rep prohibited services
confidential advice
services that require discretion/judgment
no advocacy or representation
Agency
A legal relationship between two persons; one of whom consents that the other acts on their behalf
Represented party is the principal
Agent is person acting on their behalf
Scope of authority to act
General authority: broad
Specific authority: limited
Three types of authority
Express: oral or written actions of an agent
Implied: do anything related to carrying out express authority
Customary: act in a reasonable manner as is customary to the trade
Limits on authority
Capacity to contract
Capacity to delegate
Capacity to incur expenses
5 elements in representation relationships
creation of law, not intention of parties determines existence of agreement
consensual by written, verbal, implied conduct; relationship ends if consent withdrawn
controlled by principal, agent can’t disagree
fiduciary duties, represent best interests
legal position, legally liable for actions of agent
Establishing representation relationship
agreement
implication
ratification
estoppel
operation of law
Agreement
orally or writing, and actions taken by the parties
oral
no proof
can’t make client understand role
written
residential and property management must be in writing
commercial should be in writing
Commercial real estate exception
doesn’t need a written agreement; but it is encouraged
buy can enter into written agreement in non-exclusive rep.relationship so multiple brokerages can work with them
implication
implied by the conduct of the parties involved
