+
Related Flashcards
Cards In This Set
| Front | Back |
|
Agent is:
|
A person authorized to work on behalf of another
|
|
Agency is governed by:
Common Law: Statutory Law: |
Common Law: Rules of society established by tradition
Statutory Law: Laws, rules, regulations enacted by legislature etc |
|
Creation of Agency
1) Express Agency 2) Implied Agency |
1) Based on a formal agreement b/w parties (oral or written)
2) Based on actions of parties ---> Source of compensation does not determine agency |
|
Definitions
Subagent: Principle: Customer: Nonagent: Fiduciary: |
Definitions
- Agent of an agent (uncommon) - Principle = Client (buyer/seller/landlord/tenant) - Nonrepresented consumer, some services received - Facilitator etc. Assists transaction w/out representing (paperwork) - the relationship where the agent held in position of special trust and confidence by principle |
|
Agent relationship with Client vs Customer
|
- Works FOR the client, in their best interests at all times
---> Client has representation - Works WITH the customer giving fair / honest info ---> Customer does not have representation |
|
Agent has Fiduciary relationship with client - Duties and Laws
(OLDCAR) |
Obedience - good faith + compliance w/in law and ethics
Loyalty - above own interests and all others Disclosure - all facts you know affecting a transaction + offers Confidentiality - Accounting - Immediate deposit etc, escrow, reporting Reasonable Care and Diligence - |
|
Termination of Agency:
|
- Completion
- Death or (mental) incapacity of either party - Expiration of terms - Mutual agreement - Breach by either party - By law i.e. bankruptcy of client |
|
Types of Agency Relationships
Universal: General: Special: |
Types of Agency Relationships
- i.e. property manager (general agent of owner) broker doesn't have such a scope - similar to above, represents principle generally - Realtors - Specific purpose, for a special occasion i.e. a sale |
|
Designated Agency:
|
Can be either buyer or seller, but just one, only agent - allows in house sales
|
|
Single Agency:
|
- Only one or other party i.e. rules out in house sales usually
|
|
Exclusive Right-to-Sell / Buy
|
- Best kind, receive compensation no matter what
|
|
Exclusive Agency
|
- If seller finds buyer elsewhere, no obligation to compensate agent
|
|
Seller's Agent:
Buyer's Agent: Dual Agency: |
- Seller's agent
- Common after 80's MA law of agency disclosure - Agent represents two principles in same transaction: must be informed and consent to it |
|
Disclosure of Agency:
|
Mandatory agency disclosure laws in every state
- required to sign at first meeting saying you have agency, this is what it means etc. |
|
Customer Level Services:
|
- honesty
- fair dealing - disclosure of facts about property - reasonable care |
