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62 Cards in this Set

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  • Back
The agent of an agent, appointed by an agent
AGENCY
A consensual, fiduciary relationship where the principal authorizes the agent to represent them in business with third parties
AGENCY RELATIONSHIP
The one who does not have a signed relationship with the agent-the one the agent works with to meet the objective of the principal
CUSTOMER
One who retains or employs another to represent him in legal dealings with third parties
PRINCIPAL
One who gives personal services to his employer and is under control, direction and supervision of his employer
SERVANT
The written contract giving authority for the agent to act on behalf of the client
POWER OF ATTORNEY
The agent who is in position of loyalty, trust and confidence of the principal
FIDUCIARY
The client is the Principal. The one who hires the agent to do professional services (also the broker, boss, is the agent's principal
CLIENT
One authorized and empowered to perform actions for another-represents the interest in the principal
AGENT
Person authorized by another (in writing) to represent another of act in their place
ATTORNEY IN FACT
One person authorizes another to represent them in legal or business transactions
AGENCY RELATIONSHIP
A relationship where there is mutual exchange of trust and confidence.
FIDUCIARY RELATIONSHIP
The principal (the client) is one who retains the services of an agent to represent him in legal and business dealings with third parties
PRINCIPAL
Also called the principal retains the agent for dealing with third parties
CLIENT
Authorized and empowered to perform actions for the principal
AGENT
The agent of the agent- the power to appoint subagents comes from the agent's principal
SUBAGENT
The agent is trying to do business with the third party while representing his client.
THIRD PARTY
Buyer or seller who has made the informed decision to represent themself
CUSTOMER
THE AGENCY RELATIONSHIP CONSISTS OF FIVE ITEMS
1 CONTRACTUAL
2 PERSONAL
3 FIDUCIARY
4 CONFIDENTIAL
5 EMPLOYMENT
DUAL AGENCY CONSISTS OF:
1 COMPANY AND 2 CLIENTS
UNDISCLOSED DUAL AGENCY CONSISTS OF:
SELLER-CLIENT
REPRESENT BOTH OF THEM AND HIDE IT, CAN LOSE LICENSE, COMMISSION
UNDISCLOSED DUAL AGENCY AND RESULT IN HINT (5)
Forfeit commission
Punitive Damages
Contract Rescission
Fraud charges
Loss of license
DISCLOSED DUAL AGENCY CAN BE:
used with a specific transaction
prior informed and written consent
DESIGNATED AGENCY CAN DO WHAT?
Represent clients on the same house with equal treatment as a single agency
what is CUSTOM?
Custom allows the broker to turn over the handling of authority to the agent
RESPONSIBILITIES OF AGENT TO PRINCIPAL C
O
A
L
&
D
c-CARE, be careful
O-obedience-follow instructions
A-accounting-earnest money
L-loyalty
D-disclosure, keep client informed
TWO TYPES OF AGENCY AUTHORITY
EXPRESS- want
IMPLIED- don't want
EXPRESS-all terms of employment are clearly stated
IMPLIED-OSTENSIBLE--based on behavior imply they're in your best interest
CONFIDENTIALLY
Agents may disclose if---
1 seller client gives consult
2 it's required by law
3 for agents defense for the commission or professional association
Principal's 5 obligations to agent
What the client owes us
1 compensation
2 reimbursement
3 opportunity
4 indemnity
5 good faith
Agents to 3rd parties (the parties we don't represent)
1 present all offers
2 full accounting
3 provide explanation of agency
4 provide explanation of scope of service
2 TYPES OF AUTHORITY OF AGENT
1. Express authority-all terms are clearly stated
2. Implied Authority(ostensible) based on custom or behavior
RESPONSIBILITIES OF AGENT
COAL&D
C-careful
O-obedience
A-accounting
L-loyalty
D-disclosure
OBLIGATIONS OF PRINCIPLE TO AGENT (6)
1. COMPENSATION
2.REIMBURSEMENT
3.OPPORTUNITY
4.GOOD CONDUCT
5.INDEMNITY -you're held harmless against uncontrollable actions
6. good faith
AGENTS RESPONSIBILITIES TO THIRD PARTIES (4)
1. present all offers
2. full accounting
3. provide explanation of agency
4.explain offered services, give advice
13 REASONS TO TERMINATE AGENCY
1. expiration
2. death
3. loss of qualification
4. destruction of property
5. loss of title
6. performance of authorized act
7. bankruptcy
8. change of law
9. mutual agreement
10. revocation by principal
11. abandonment or neglect by agent
12. disloyalty of agent
13 completion of deal
4 TYPES OF SC AGENCY
1. SELLERS
2. BUYERS
3. SUBAGENCY
4. DISCLOSED DUAL AGENCY
DESIGNATED AGENCY
Licensee represents both clients must be dual agent.
All affiliated licensees in office remain dual agents.
BIC can't be designated agent personally lists property or represents buyer.
TORTS
CIVIL WRONG!! you're liable for the people you empower
Dangers for an agent to do:
Choosing helpers (inspectors, bankers)
"AS IS " condition
MASKING- an agent knowing someone is doing something illegal
Seller's Disclosure Statement
BROKER
person who is engaged in activities relating to the transfer, rental or maintenance of real estate
BUYER'S BROKER
broker retained by buyer
DISCLOSED DUAL AGENCY
fully disclosed that the agency is representing both the buyer and seller
CONTRACTEE
employer who contracts for the services of an independant contractor
COOPERATING BROKER
has contractual relationship with the listing broker or the buyer but not the seller
DISCLOSED PRINCIPAL
principal in an agency relationship whose identity is made known to third persons dealing through the agent
EMPLOYING BROKER
the (broker, principal ) real estate firm who's responsible for the supervision of those he employs as his subagents
EXPRESS AGENCY
agency relationship wherein the scope of the agent's authority to act for the principal is explicitly described
EXPRESS AUTHORITY
the authority which is explicitly set forth as instructions by the principal in the agency agreement
GENERAL AGENT
one given broad authority to act on behalf of his principal
UNDISCLOSED DUAL AGENCY
represent buyer and seller and don't let them know-can be sued or worse
IMPLIED AGENCY
created by the principal and the agent, as evidenced by their acts and conduct
IMPLIED AUTHORITY
express authority conferred on the agent by the acts of conduct of the principal
INDEMNIFY
to compensate for incurred damage
INDEPENDANT CONTRACTOR
one who contracts to provide a service for another
LISTING BROKER
the agent hired by the seller to represent him in a principal-agent relationship relative to a listing contract
OSTENSIBLE AGENCY
agency created by force of law, without the voluntary assent of either the principal or the agent
OSTENSIBLE AUTHORITY
authority which a principal holds his agent responsible as possessing, even though such authority was never actually granted
PARTIALLY DISCLOSED PRINCIPAL
when an agent, in his dealings with third persons, reveals the existence of an agency relationship without divulging the identity of his principal
PROXY
one acting as the agent of another, usually at some meeting --substitute for an agent
SPECIAL AGENT
one whose authority is confined to a special task. real estate agent usually normally act in the capacity of special agents
THIRD PARTY
one who is not a party to a contract but who made be affected by it
UNDISCLOSED PRINCIPAL
principal in an agency relationship whose identity or the fact that an agency relationship exists, is not disclosed by the agent in dealings with third parties