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36 Cards in this Set
- Front
- Back
What is agency? |
A legal relationship between the broker and their client who authorizes the broker to act on their behalf. |
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Who/what is the principal? |
The cluent who authorizes the broker. |
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Who or what is an agent? |
The broker who derives authority from the principal by written agreement. |
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Who or what is a sub-agent? |
A person who is authorized to act by the agent. (Co-broker) |
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The sellers broker and the buyers broker have what relationship? |
Co-brokers. |
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What is needed for a co-broker to be a sub-agent? |
Contract/written agreement. |
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What are the four different types of agency relationships? |
Special, General, Universal, and Ostensible/Implied agency. |
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What type of agency does a business manager have? |
Universal Agency. |
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What is special agency? |
When an agent is authorized to do one particular thing. |
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What is the opposite of special agency? |
Universal Agency. |
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What is general agency? Example? |
Partial responsibility. the agent is authorized to perform a series of tasks associated with the continued operation of a particular job. Like a property manager. |
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What is another name for ostensible agency and what is it? |
Implied. When there is no express agreement in place but the parties are acting like they have an agency agreement. |
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What are the five different types of agents? |
Seller's, buyer's, designated, dual agent, and transaction broker. |
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When a seller hires an agent and signs a listing agreement that agent is which type of agent? |
Seller's Agent.
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When a buyer hires an agent and signs an agency agreement that agent becomes which type of agent? |
Buyer's Agent. |
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When the broker appoints a specific agent to represent a specific principal that agent is what type of agent? |
Designated Agent. |
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When the broker works for both the buyer and seller what type of agent are they and what must they do? |
Dual Agent. They must have a written disclosure and permission from both parties. |
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What is a transaction broker? |
A facilitator. A broker who works for neither the buyer nor the seller. They are both customers but not clients. |
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Is payment of a commission how an agency agreement is made? |
No. Express or implied agreement originating from the principal is how an agency agreement is made. |
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What is a person called that has power of attorney? |
Attorney-in-fact. |
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Power of attorney is a written instrument that gives an agent limited or unlimited authority to act in a principals place. True or False? |
True. |
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What does the acronym L.O.A.N.R.A.T. mean? |
It spells out the duties of the agent to the principal to be Loyal, Obedient, Accountable, give Notice (or disclosure), give Reasonable care, be Accurate, and Truthful. |
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What duty does the agent have to the principal as an adviser and an advocate with a legal or ethical relationship of trust? |
Fiduciary duty. |
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Obedience: What instructions is an agent allowed to be disobedient to. |
Unlawful instructions. |
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An agent must pursue a principals best interest above their own or that of others, this is which duty of an agent to a principal? |
Loyalty. |
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If an agent is an undisclosed buyer of the principal's property or has an undisclosed interest they are breaching which of their duties to their principal? |
Loyalty. |
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Why must an agent promptly communicate and explain all written offers to the seller if the seller has not yet accepted an offer? |
It is their duty as an agent to give notice and give full disclosure of all material facts. |
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What must the agent be accountable for? |
The funds and property of others. |
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Why must an agent fact check and not rely on others word? |
Because it's the agent's duty to be accurate. |
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An agent must be honest and disclose all facts that materially affect the value of the property to all parties regardless of who they represent. True or False? |
True. |
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Does the principal have any duties to the agent? If so, what are they? |
Yes. Compensation and truthfulness. |
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What, if any, are the duties of the agent to third parties? |
No misrepresentation, Disclosure of adverse material facts about a property, fairness and pretty much all of the same duties they have to their principal. |
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What is the difference between latent defects and patent defects? |
Latent defects are hidden and patent defects are obvious. Both must be disclosed if known. |
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Caveat empton, buyer beware, is no longer valid under law. True or False? |
True. |
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If the property is being sold "as is" does this mean that you don't have to give full disclosure about the material facts of the property? |
No. |
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An agent must deal fairly with the buyer and account for the buyers... |
Property. |