unit 9 Flashcards
(24 cards)
Parties in an agency relationship are:
Principal: one who employs another to act on their behalf
Agen/fiduciary: one who is employed to represent the principal
third party: a party to a transaction who is not a party to the particular agency contract
Facilitator: one who provides service not representation
What does the common law agency do?
specifies fiduciary duties to principal (OLD CAR)
What does old car stand for?
Obedience loyalty disclosure confidentiality accounting reasonable care and skill
what is obedience?
an agent must obey the lawful directions of the principal
what is loyalty?
an agent must place the interes t of the principal above all others
what is disclosure?
disclose to the principal and all parties all known material facts about the property
What is confidentiality
must keep price, terms and motivations confidential forever
What is accounting?
account for any money or personal property entrusted to agent
When do you need to tell clients to not share confidential information with the agent?
at first substantive contact
What is a Special agency?
the agent is authorized to perform a particular act without the ability to bind the principal contractually
listing brokerage firm to seller
buyer brokerage firm to buyer
What is a general aggency?
the agent is authorized to perform a series of acts associated with the continued operation of a particular business
salesperson or broker associate to employing broker
What is a universal agency?
the agent is authorized to perform in place of the principal the agent has unlimited ability to bind the principal
Most states require an agency relationship disclosure form be provided to the consumer at
first substantive contact
Where do you put OPM?
Other peoples money or trust funds go into a trust account
what is an OPM or Trust fund?
earnest money, rents, and security deposits
Can a salesperson open a trust account?
no only brokerage firms
Who should the licensee deliver earnest money check to?
the listing brokerage firm per the terms of the purchase contract or determined by state law
what is commingeling
mixnng personal funds or the firms funds with trust funds
huge nono
what is conversion?
converting trust funds into your own money by gambling or to pay bills
a broker must notify the seller if NSF occurs
who creates the sellers disclosure statement?
the seller at the best of their current knowledge on the property
what is a material fact?
this is a fact or defect that if known might change a decision
What is Megans law?
it requires the registration of sex offenders
they should inform buyers concerned about this to contact local law enforcement
What is Errors and Ommissions?
it covers liability for errors, mistakes and negligence in real estate activities
does not cover criminal acts
What is a Fid
