Chapter 5 (Agency)

  1. Agency
    Agency relationship, on party (an agent) represent another party (the principal) in dealing with a 3rd party
  2. What is the A-B-C of an Agency Relationship?
    A-Agreement, agent acts on behalf of the principle

    B-Benefit, the principle benefit from agent

    C-Control, the principal sets boundaries for the agent, if the agent does not follow these boundaries, the principal can end agency relationship.--->limitation set up by principal
  3. What is a fiduciary Relationship?
    • Relationship of trust
    • -agent act on the best interest of client.

    if agent upset client---> affects PI and agency
  4. The duties of fiduciary relationship are?
    • G- Good faith
    • O- Obedience
    • L- Loyalty
    • D- Disclosure
    • C- Confidentiality
    • A- Accounting
    • R- Reasonable Care
    • H- Honesty
    • I- Integrity
  5. Fiduciary relationship only exist in?
    In a client not customer

    -A customer is unrepresented by a licensee.
  6. Seller's Agent (listing agent)
    The broker who obtains the listing from the seller
  7. Buyer's agent
    is a broker who acts as an agent for the buyer not obtained through the MLS
  8. Selling Agent (cooperating agent or participating agent)
    Selling agent is a broker who represent the buyer which is obtained through the MLS.
  9. Universal agent
    serve principal in any capacity.

    ex: general power of attorney
  10. General agent
    Represent the principal in particular business. Agency relationship is continuous.
  11. Special Agent
    Represent the principal in a particular activity or transaction. Relationship is not continuous.
Card Set
Chapter 5 (Agency)
Dowers Exam