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16 Cards in this Set
- Front
- Back
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What is the connection between compensation and the agency relationship? |
The relationship is independent of any compensation arrangement. The agency relationship does not require compensation or any form of consideration. |
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What are the fiduciary duties of an agent? |
To inform the client of all material facts, reports, and rumors that might affect the client's interests in the property transaction. This includes: the agent's opinion of the property's condition; information about the buyer's motivations and financial qualifications; discussions between agent and buyer regarding the possibility of the agent's representing the buyer in another transaction. |
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What is a subagency? |
A broker or licensed salesperson works as the agent of a broker who is the agent of a client. Subagents might include a cooperating licensed broker, that broker's licensed salespeople, and the listing broker's licensed salespeople, all of who agree to work for the listing broker on behalf of the client. |
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What is a dual agency? |
When one agency represents both principal parties to a transaction. The agent represents both the buyer and the seller or tenant and owner. |
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What is a transaction broker? |
A facilitator whos only fiduciary duties and standards of conduct are thos of accounting; skill, care, and diligence; honesty and fair dealsing; and disclosure to both parties of all material facts in residential sale transactions affecting the property's value. Some states do not allow for this from of relationship in a real estate transaction. |
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What is the essential foundation of the agency relationship? |
Trust, confidence, and mutual good faith. |
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What is a general agency? |
The principal delegates to the agent ongoing tasks and duties within a particular business or enterprise. Such delegations may include the authority to enter into contracts. |
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What is special agency? |
The principal delegates authority to conduct a specific activity, after which the agency relationship terminates. In most cases, the special agent may not bind the principal to a contract. Real estate brokerage is commonly based on special agency. |
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What is implied agency? |
When a party creates an agency relationship outside of an express agreement. |
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The meaning and salient characteristics of the agency relationship should be disclosed to the client when? |
Prior to completing a listing agreement. |
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When should a buyer agent or tenant representative disclose his or her agency relationship to the owner's agent? |
On first contact. Substantive contact is assumed to occur immediately in this circumstance. |
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Can you assign a listing agreement? |
No, since a listing agreement is a personal service contract, it is not assignable. In particular, a broker cannot assign a listing to another broker. |
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What are the two principal determinants of procuring cause (getting commission)? |
Being the first to find the customer, and being the one who induces the customer to complete the transaction. |
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Why may a listing terminate? |
A listing may terminate on ground of: performance; infeasibility; mutual agreement; revocation; abandonment; breach; lapse of time; invalidity of the contract; incapacitation of either party; destruction of the property; or involuntary title transfer. |
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What is an open listing? |
A non-exclusive authorization to sell or lease a property. The owner may offer such agreements to any number of brokers in the marketplace. With an open listing, the broker who is first to perform under the terms of the listing is the sole party entitled to a commission. |
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What a net listing? |
A listing in which an owner sets a minimum acceptable amount to be received from the transaction and allows the broker to have any amount received in excess as a commission, assuming the broker has earned a commission according to the other terms of the agreement. |
