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46 Cards in this Set
- Front
- Back
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Common Law
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Rules of society
Established by tradition |
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Statutory Law
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enacted by legislature/governing bodies
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Sources of Law
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Common and Statutory
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Law of Agency
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defines the rights and duties of the principal and agent
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Creation of Agency
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Express- Formal
Implied- Actions (compensation (gratuitous)) |
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Express Agency
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Terms of Agreement
Parties agree Oral or Written (written =enforceable) |
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Implied Agency
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Actions of the parties
Unintentional, Inadvertently, or accidentally (customers may assume) |
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Agent
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Authorized and consents to represent the interests of another person (broker is agent- shares resp with licensee)
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Subagent
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Agent of agent.
Agent of principal |
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Principal
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individual who hires and delegates to the agent
Buyer, seller, owner, tenant |
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Agency
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fiduciary relationship between the principal and agent
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Fiduciary
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relationship in which agent has special trust and confidence by principal
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Client
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the principal
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Customer
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3rd party for whom some level of service is provided and who is entitled to fairness and honesty
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Non-agent
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facilitator, transaction broker
intermediary who assists one or both- doesn't represent either party |
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Consensual Agreement
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principal delegates and the agent consents to act.
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Fiduciary Responsibility
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Care
Obedience Loyalty Disclosure Accounting Confidence |
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Obedience
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Good Faith
According to principal's instructions (legal) |
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Loyalty
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Principal's interest before own
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Disclosure: Seller
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All offers
Identity and relationship of buyer Ability of buy to complete (offer higher) Agent's interest Buyers intention to resell Fair Market Value |
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Disclosure: Buyer
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Property deficiencies
Unsuitable contract provisions Suggest lower price Length of time on market |
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Accounting
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Escrow- Commingling or conversion is illegal
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Confidentiality
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Must keep information about personal affairs confidential
Must disclose material facts |
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Termination of agency
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Completion
Death Destruction Expiration Agreement Breach Law |
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Agency coupled with and interest
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agents had interest in the subject (property)
-can't be revoked by principal -NOT terminated by death |
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Types of Agency Relationships
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Universal- No limits
General- range of matter for one Special- rep one transaction Designated-authorized by broker |
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Universal Agent
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No Limits
General Power of Attorney Attorney at fact |
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General Agent
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Rep principal in range of matters related to one business activity. recieves power to enter contracts on behalf of principal within scope
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Special Agent
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rep principal in one transaction-such created by terms of listing agreement or buyer agency contract
-agent can't enter contract or bind principal to and act |
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Designated Agents
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authorized by broker to act as agent
-others in office free to act -broker may be dual agent- disclose -ND STATE? |
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Single Agency: Subagency
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Broker appoints other brokers as the listing broker
-created offer by cooperation and compensation - other brokers can accept or reject subagency offer |
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Single Agency: Seller as principal
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Broker- agent of seller
Listing Agreement=relationship buyer- customer Broker can use subagent, nonagents |
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Single Agency: Buyer as principal
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Broker- agent of buyer
Buyer agency contract seller- customer |
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Single Agency: Owner as principal
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Broker- agent of owner to manage or lease
property management agreement |
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Dual Agency
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The broker represents two principals in the same transaction.
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Disclosed Dual Agency
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Both principals informed and consent (ND)
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Disclosure of Agency
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Level of service
Who licensee represents Advantages/Consequenses Mandatory/voluntary disclosures |
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Non-agency
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transactional broker, facilitator, contract broker
-help both -paid commission -responsible for both -honesty competently |
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Agency statues
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care and skill
obey client instructions account for $ promote client interests broker agreement terms confidence |
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Customer- level services
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care and skill
honest and fair disclosure of known facts (disclosure forms- purchase inspection) |
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Disclosure of hazard
(latent/patent) |
Latent- hidden
Patent- visible |
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Opinion vs Fact
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Opinions- must be listed as such
Fact- accurate |
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Fraud
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intentional misrep to harm or take advantage of
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Puffing
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exaggeration of benefits
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Negligent Misrep
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ignorance- material fact that should have been known- buyer relies on broker's statements
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Stigmatized properties
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Undesirable- criminal event, suicide.
ND- agent can answer or ignore. |
