Law of Agency CH. 3

  1. What is a universal agent?
    is one that can serve the principal in any capacity. An agent with a power of attorney would have such a capacity, but this is rare in real estate.
  2. What is a general agency?
    represents the principal in a particular business. Thus, employees, for instance, are general agents of the employer. A property manager is usually a general agent of the owner and real estate agents are general agents of the brokerage that they represent. A broker may also assign one of her agents as the designated agent for a particular client. Sometimes, for an in-house sale, a broker may designate an agent for the seller and another agent for the buyer of the same property.
  3. Amendment 535.2 of Commission Regulations clarifies that a broker is liable for the activities of the salesperson
  4. TREC Rule 535.3 states what?
    that all compensation agreements between a broker and sponsored salespersons must be in writing.
  5. What is a special agency relationship?
    represents the principal in a particular activity or transaction—this is the relationship that most real estate agents have with their clients. The agents are contracted specifically to buy or sell a particular piece of property. A special power of attorney can also confer a special agency relationship.
  6. In Texas, the real estate broker is primarily recognized to be a _______ agent, engaged by others to negotiate bargains or contracts for the sale or lease of real estate between other people for which the broker is paid a commission.
  7. The seller and the agent have to disclose any defects of the property...
    they both are reliable and both can be sued.
  8. You should keep notes and backup information for all conversations between you and the sellers and file them.
    If the sellers did not disclose something this is your defense.
  9. What are non-agency?
    (aka contract broker, facilitator, intermediary, transactional broker, or transactional coordinator) to a specific party may also perform some services to effect the real estate transaction, but as nonagents, they owe no fiduciary duty to the party.
Card Set
Law of Agency CH. 3
Law of Agency CH. 3