Unit 9 Agency Flashcards
(34 cards)
What is the law of agency?
The rights and duties of the parties in a real estate transaction. Governed by Common law tradition, and statutory law
What is an agent?
A person authorized to represent the interests of the principal in the dealings with a third person.
What is a principal?
The person who hires the agent, and delegates the agent the responsibility of working.
What is agency?
The fiduciary relationship between the agent and principal, where the agent represents the principal.
What is fiduciary?
The relationship between the agent and principal where the agent held in a position of special trust and confidence by the principal.
COLD-AC Care Obedience Loyalty Disclosure Accounting Confidentiality
What is a client?
The principal.
What is a customer?
A third party nonrepresented consumer. Is not a principal.
What is a nonagent?
aka facilitator, intermediary, transactional broker, transaction coordinator, or contract broker assists one or both parties in a-transaction without representing either party
What is express agency?
Agreement where the parties formally express their intention to establish an agency and state its terms and conditions, written or oral.
What is implied agency?
When the actions of the parties indicate that they have mutually consented to an agency.
What are the duties of a fiduciary relationship?
Care Obedience Loyalty Disclosure Accounting Confidentiality
What is care?
The use of skill and knowledge in the service of a client.
What is obedience?
Following the requests of the principal within the law.
What is loyalty?
The principals best interest are at heart even over the intersts of the agent.
What is accounting?
The ability to report the status of all funds received.
What is disclosure?
Keeping the principal informed about material facts, and things the agent knows or should have known.
What are the 3 types of agency?
1-Universal Agent
2-General Agent
3-Special Agent
What is an universal agent?
Person empowered to do anything the principal could. POA
How is agency terminated?
1-Completion, performance
2-destruction or condemnation of property
3-expiration of the terms of agency
4-mutual agreement of all parties in the contract
5-breach by one of the parties
6-operation of law
agency coupled with an interest doesn’t automatically terminate agency (agent has ownership)
What is a general agent?
Representation of a principal in a broad range of matters related to a particular business or activity.
What is a special agent?
Limited agent, authorized to represent principal in act or business transaction only.
What is single agency?
Agent represents only one party in any single transaction.
What is a designated agent?
aka Designated representative Someone the broker appoints to represent a specific principal.
What is dual agency?
Agent represents two principals in the same transaction. with informed consent of both principals.
