Term
| Name the parties in an agency relationship and their roles: |
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Definition
Agent: A person authorized to represent another in dealings with a third party
Principal: Person authorizing agent to act on their behalf (AKA the agent's client) |
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Term
| 4 ways to create an agency relationship: |
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Definition
- Express Agreement (does not have to be in writing although does not guarantee compensation)
- Implication
-Ratification
- Estoppel
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Term
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Definition
| When the principal gives approval to unauthorized actions after they are performed (or benefits from them), creating an agency after the fact. |
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Term
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Definition
When the principal allows a third party to believe an agency relationship exists, so that the principal is legally precluded (estopped) from denying the agency.
(protects interest of the third party) |
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Term
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Definition
When a person through their actions or behaviors makes another believe, or implies, that they are their agent this can create an agency by implication.
Requires agent to acknowledge relationship to protect principal's interest |
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Term
Scope of Authority:
List 3 basic types of agents |
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Definition
- Universal agent
- General agent
- Special agent |
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Term
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Definition
| One authorized to do anything that can be lawfully delegated to a representative. Highest degree of authority. |
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Term
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Definition
One authorized to handle all of the principal's affairs in one or more specific areas.
Ex: military spouses and business managers |
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Term
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Definition
One with limited authority to do a specific thing or conduct a specific transaction.
Example: Real estate brokers (usually) |
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Term
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Definition
Actual authority is granted to an agent by the principal, either expressly or implied.
Express actual authority is communicated to the agent in express terms, either written or orally
Implied actual authority is the authority to do what is necessary to carry out expressly authorized actions |
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Term
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Definition
| No actual authority granted, but the principal allows it to appear that the agent is authorized, and therfore is estopped from denying the agency. Also called ostensible authority. |
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Term
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Definition
A negligent or intentional wrongful act involving a breach of duty imposed by law (as opposed to a breach of contractual duty)
It is a mistake, accident, or misconduct that results in injury or financial harm to another person.
Breach of agency duty is a tort. |
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Term
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Definition
| A person who stands in a special position of trust and confidence in a relation to someone else |
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Term
Licensee's General Duties (7):
(Owed to principal and third parties) |
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Definition
- Care/ Skill
- Honesty/ Good Faith
- Accounting
- Disclosure of material facts
- Disclosure of agency
- Presenting all written communications
- Presenting agency law pamphlet |
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Term
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Definition
| Information that has substantial adverse effects on the value of the property or on a party's ability to perform, or that defeats the purpose of the transaction. |
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Term
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Definition
A material fact; one that is not discoverable by ordinary inspection.
Licensee and seller each has the duty to disclose latent defects to prospective buyers. |
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Term
| Agent's duties owed to Principal only (5): |
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Definition
- Loyalty
- Conflicts of Interest
- Confidentiality
- Good Faith and Continuous Effort
- Expert Advice |
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Term
| 3 ways to terminate an agency by the parties: |
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Definition
- mutual agreement
- revocation by the principal
- renunciation by the agent |
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Term
| 4 ways to terminate an agency by law: |
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Definition
- expiration of agency term
- fulfillment of purpose of the agency
- death, incapacity, or bankruptcy of either party
- extinction of the subject matter |
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Term
| Listing Agent vs. Selling Agent |
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Definition
Listing agent: Salesperson or broker who takes the listing on a home
Selling agent: The selling salesperson is the salesperson who procures a buyer for a property
(This could or could not be the same agent) |
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Term
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Definition
A licensee who did not take the listing on a property an who attempts to find a buyer. (Represent's buyer)
(If cooperating agent procures a buyer, they are then the selling agent.) |
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Term
| 4 types of real estate agency relationships: |
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Definition
- Seller agency (listing agreement)
- Buyer agency (WA law, unless other written contract, automatically represented by agent they are working with)
- Dual agency
- Non-agency |
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Term
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Definition
| A sale in which the buyer and the seller are brought together by salespersons working for the same broker |
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