AZK RE L-02 C-10 Agency 1 - 0-50

  1. Common law
    - the rules established by tradition and court decisions
  2. Statutory law
    • - the law enacted by legislature
    • - after the fact
  3. Administrative law
    • - the rules and regulations created by a real estate commissions and departments as authorized by legislature
    • - Part of agency
  4. Agent
    • .
    •    - is a person authorized to act on behalf of the principal in dealing with a third person
    •    - represents Principal
    •    - sales associate of a RE broker act as agent (representative) of the broker
    •    - sales associate have the same relationship to a client of the firm that the broker does
  5. Agent represents?
    Principal
  6. Principal
    • - individual who hires the agent 
    • - buyer or seller
    • - landlord or tenant
  7. Agency
    • .
    •    - fiduciary relationship between the principal and the agent
    •    - agent is authorized to represent the principal in one or more transactions
  8. Fiduciary relationship between the principal and the agent
    Agency
  9. Fiduciary relationship
    - relationship in which the agent is held in a position of special trust and confidence by the principal
  10. Relationship in which the agent is held in a position of special trust and confidence by the principal
    Fiduciary relationship
  11. Client
    • .
    •    - is the principal in a RE transaction for whom a real estate broker acts as agent and gives advice and counsel
    •    - agent represents client
  12. Principal in a RE transaction for whom a real estate broker acts as agent and gives advice and counsel
    Client
  13. Customer
    • .
    •    - the 3rd party or non-represented consumer who is not a principle but for whom some level of service may be provided
    •    - entitled to fairness and honesty
    •    - may be represented by a separate agent
  14. The 3rd party or non-represented consumer who is not a principle but for whom some level of service may be provided
    Customer
  15. Nonagent
    - or (5)
    • .
    •    - another names
    •       - facilitator 
    •       - intermediary 
    •       - transactional broker
    •       - transaction coordinator
    •       - contract broker
    •    - someone who works with a buyer and seller (or a landlord and tenant) assistant one or both parties with the transaction without representation either party's interest
  16. Someone who works with a buyer and seller (or a landlord and tenant) assistant one or both parties with the transaction without representation either party's interest (6)
    • - Nonagent
    • - facilitator 
    • - intermediary 
    • - transactional broker
    • - transaction coordinator
    • - contract broker
  17. facilitator
    Nonagent
  18. intermediary
    Nonagent
  19. transactional broker
    Nonagent
  20. transaction coordinator
    Nonagent
  21. contract broker
    Nonagent
  22. Single Agent
       - represents...
       - works for
    • .
    •    - represents only one of the parties to a transaction 
    • .
    •    - works for
    • .
    •       - principal (client)
    •          - entrusted with certain confidential information
    •          - has fiduciary responsibilities
    •          - client can expect full disclosure of all relevant information 
    • .
    •       - customer
    •          - customer is entitled for factual information and fair and honest dealing
    •          - but does not receive advice and console
  23. Principal's responsibilities (3)
    • 1) comply with the agency agreement
    • 2) cooperate with the reasonable expectation of the agent
    • 3) compensate the agent
  24. Agent's responsibilities
    Fiduciary (COLD-AC) duties to the principal
  25. Express agency created by
    by Express agreement
  26. Express agreement may be
    may be oral or written
  27. In Express agency parties formally expressed their intention to
    • - establish an agency
    •          and
    • - state its terms and conditions
  28. Listing Agreement
    • .
    •    - Seller Representation Agreement (Contract)
    •    - agency relationship between a RE seller and a broker
    •    - authorizes the broker to find a buyer or tenant for the owner's property
  29. Agency relationship between a seller and a broker
    • - Listing Agreement
    • - Seller Representation Agreement (Contract)
  30. Buyer Representation Agreement
    • .
    •    - Express agency relationship between a buyer and a broker
    •    - authorizes the broker to find the appropriate property
  31. Express agency relationship between a buyer and a broker
    Buyer Representation Agreement
  32. Implied agency
    • .
    •    - set of events
    •    - result of parties' behavior

    •    - parties act as
    •       - they have mutually consented to an agency
    •       - they have not entered into a formal agency agreement
    • .
    •    - CT prohibit the creation of agency implied by conduct
  33. Agency created by set of event as a result of parties' behavior
    Implied agency
  34. Agency in which parties act as they have mutually consented to an agency, but have not entered into a formal agency agreement
    Implied agency
  35. Gratuitous Agency
    - agency with no fee involved
  36. agency with no fee involved
    Gratuitous Agency
  37. Real Estate Sales Associate can only receive compensation from...
    ... the sales associate Employing Broker
  38. Fiduciary responsibilities
    - RE broker owes the principal certain (Fiduciary) duties

    COLD-AC


    • Care
    • Obedience
    • Loyalty
    • Disclosure
    • |
    • Accounting
    • Confidentiality
  39. Care
    • - Fiduciary responsibility
    • - the representative is liable to the principal for any loss resulting from the representative's negligence or carelessness
  40. Obedience
    • .
    •    - Fiduciary responsibility
    •    - Listening the client and show what client wants (only legal)
    •    - disclose Material Facts 
    •    - obeying the principle's lawful instructions in accordance with the contract
  41. Loyalty
    • .
    •    - Fiduciary responsibility
    •    - client’s interest first
  42. Disclosure (4)
    • .
    •    - Fiduciary responsibility
    •    - information that must be disclosed could include
    •    1) Any relationships the purchasers might have with the agent)
    •    2) Purchasers’ ability to complete the sale or offer higher price
    •    3) Any interest or prospective interests the agent has in the buyer or the buyer’s business
    •    4) An incorrect market value of the property
  43. Fiduciary responsibility in which the representative is liable to the principal for any loss resulting from the representative's negligence or carelessness
    Care
  44. Fiduciary responsibility in which agent listening the client and show what client wants (only legal)
    Obedience
  45. - Fiduciary responsibility in which agent discloses Material Facts
    Obedience
  46. - Fiduciary responsibility in which the agent obeying the principle's lawful instructions in accordance with the contract
    Obedience
  47. Fiduciary responsibility in which client’s interest first
    Loyalty
  48. Information that must be disclosed to client
    • 1) Material Facts
    • 2) Any relationships the purchasers might have with the agent)
    • 3) Purchasers’ ability to complete the sale or offer higher price
    • 4) Any interest or prospective interests the agent has in the buyer or the buyer’s business
    • 5) An incorrect market value of the property
  49. Selling property “as-is”
    - a buyer is free to accept a property in its current condition but has the right to know what that condition is
  50. Confidentiality
    • .
    •    - Fiduciary responsibility
    •    - confidential personal information
  51. Universal Agent
    • - is a person improved to do anything the principal could do personally
    • - virtually Unlimited
    • - Court Appointed
  52. Agent improved to do anything the principal could do personally is a...
    Universal Agent
  53. General Agent
    • - may represent the principal in a broad range of matters related to a particular business or activity
    • - Property manager
  54. Agent that may represent the principal in a broad range of matters related to a particular business or activity
    General Agent
  55. Special Agent
    - or
    • - or limited agent
    • - is authorized to represent the principal in one specific act or business transaction only
    • - Realtor
  56. Limited Agent
    - or
    • - Special Agent
    • - is authorized to represent the principal in one specific act or business transaction only
    • - Realtor
  57. Agent that authorized to represent the principal in one specific act or business transaction only
    • - Special Agent
    • - Realtor
  58. When Disclosure of Agency must be done?
    - before any confidential information is disclosed
  59. Single Agency
    - agent represents only one party (either sellers and buyers – or landlord or tenants) to a transaction
  60. What kind of agency relationship b/w a RE broker and Sales Associate of that broker
    Single Agency
  61. Listing Contract
    - document that usually forms the agency relationship of broker and seller
  62. Agreement in which an owner may employ a broker to market, lease, maintain or manage the owner’s property
    Property Management
  63. Property Management
    • - is an agreement in which an owner may employ a broker to
    •    - market
    •    - lease
    •    - maintain 
    •    - manage the owner’s property
  64. Dual Agency
    • - agent represents two principals (seller and buyer) in the same transaction
    • - requires equal loyalty at the same time
    • - neither principal has the full, undivided loyalty of the agent
    • - dual agent can never fully represent either party’s interest
  65. Disclosed Dual Agency is intended to
    - to minimize the risk for the broker
  66. Undisclosed Dual Agency
    • - it might occur unintentionally or inadvertently
    • - can
    •       - create an Implied Agency (not written or oral)
    •       - violate the duties of loyalty and confidentiality to the principal selle
  67. Designated Agency (2)
    • - kind of Dual Agency
    • - or assigned agency 
    • - or appointed agency
    • - to accomplish “in-house” sale
    • - two sales associates of the same broker are involved (one represents seller and another represents buyer)
  68. Assigned agency
    • - kind of Dual Agency
    • - or Designated Agency
    • - or appointed agency
    • - to accomplish “in-house” sale
    • - two sales associates of the same broker are involved (one represents seller and another represents buyer)
  69. Appointed agency
    • - kind of Dual Agency
    • - or Designated Agency
    • - or Assigned agency
    • - to accomplish “in-house” sale
    • - two sales associates of the same broker are involved (one represents seller and another represents buyer)
  70. In what agency two sales associates of the same broker are involved (one represents seller and another represents buyer)
    • - kind of Dual Agency
    • - or Designated Agency
    • - or assigned agency 
    • - or appointed agency
  71. Agency to accomplish “in-house” sale
    Designated Agency
Author
flashsmilenet
ID
343602
Card Set
AZK RE L-02 C-10 Agency 1 - 0-50
Description
AZK RE L-02 C-10 Agency 1 - 0-50
Updated