agency by ratification EXAMPLE: An agent holds an open house while their seller-client takes

Real Estate - Level 8, Chapter 5 - The Creation of Agency Flashcards agency by ratification EXAMPLE:An agent holds an open house while their seller-client takes off for the day (as is standard practice with open houses).An hour before the event is scheduled to begin, the agent sets a fresh bouquet of flowers on the counter and pops a couple of cookie sheets into the oven so that there will be refreshments and the delightful smell of warm chocolate chip cookies wafting from the kitchen.Although the seller did not realize that the agent would be using their oven that day, they were, nonetheless, happy with the results of the open house and what the agent did to make their home's environment so welcoming.The seller's after-the-fact approval of the agent's actions served as agency by ratification.

Creation of agency requires two essential components:consentcontrol

controlhas to do with the idea that the agent (broker or sponsored license holder) has the authority to act on behalf of the client. Written agreements, contracts, and forms all contribute to the support and clarification underlying this concept of control.What BEST describes agency by ratification? when an agent takes an action outside of what they were explicitly authorized to do but which was accepted AFTER the fact by the client Ostensible Agency and Agency by Estoppel agency by which others assume your authority because of your actions or when a principal fails to monitor his agent;created when the actions or words of an individual lead a third party to believe*(example) Cindy has a "for sale" sign on her lawn, and is chatting with Karen, when an interested buyer walks by and says, "how much?" Cindy says, "ask Karen, she's a real estate agent.", even tho Cindy is not even contracted with Karen. So Karen sells her the house.implied authorityrefers to legitimate actions an agent takes in order to complete duties that the principal has already expressly authorized. Implied authority rarely creates the level of concern that implied agency can.Implied agency is a form of accidental agency. True or False?True agency can be described in terms of:1. The manner in which it is created2. The degree of authority and liability it brings3. The form that it takes Ostensible agency or agency by estoppel is created when WHO is misled about the agency relationship?a third party

gratuitous agencyagreeing to work for no compensation; although no payment changes hands, the agent is still held to all the duties of an agency relationship.*Again, GET IT IN WRITING, or you could be liable for something you did.What impact does the fact that there is no compensation attached to gratuitous agency have on an agent's duties?The agent is still held to all the duties of an agency relationship.agency by ratificationis created when an agent takes an unauthorized action on behalf of a principal, which is accepted after the fact by the principal. The principal accepting the action of the agent (such as a seller accepting an offer brought by an agent) establishes an agency relationship that did not previously exist. The principal might not have been a client at the time of the agent's action, but they became a client when they accepted the agent's action (such as accepting an offer).Ostensible Agency and Agency by Estoppel can be

created:

Prior to any express agency agreementIn the absence of an express agency agreementafter an express agency agreement has terminated;as a matter of law, the principal or agent is "estopped" from going back and trying to claim (after the fact) that agency never existed. Further, the agent and/or the principal can be held liable for financial injury to a third party.express agency1. can be created in written or oral form2. express agency is created when the principal explicitly appoints the broker/agent to act on their behalf.3. is the most popular (with reason) way that agency is created.Which of the following is true about the creation of express agency?Express agency can be created orally or in writing.express oral agencyIn states where express oral agency is allowed, if a buyer says, "I want you to find me a house," and the agent responds by saying, "I would love to do that," oral agency has been created.consentan agency relationship is created as the result of the mutual consent or agreement between the agent and the client (principal) in which the agent agrees to act on behalf of the client. In most cases, consent precedes the act (but not always).*It's important to note that both the agent AND the principal must give consent to the agency relationship.real estate agency relationship agreements in Georgia must be in WRITING Why should you SHY AWAY from express oral agencies?1. It is NOT enforceable against the principal.2. It IS enforceable against the broker.3. It is more likely to lead to complaints and/or lawsuits (than is written agency).4. It does not allow a listing agent to use the MLS.*Just don't do anything that's solely an oral agreement -- get it in writing, please!

implied agencyagency relationship arises when a party assumes consent to the relationship based solely upon inferences formed by the actions, conduct, and words of either or both parties.compensation does not equalagency relationship -A broker can potentially be

compensated by a number of different people: the client,

the customer on the other side of the transaction, another source, or some mix of the above.*it is more common that a buyer's agent would receive compensation from the seller (via the proceeds on the property sale) than from their own buyer-client directly.agency relationship DOES NOT EQUALfiduciary relationship the manner in which an agency is created: 1. Orally2. In writing3. By implication or action*the preferred manner in which to create agency is in writing. Getting it in writing is the best way to ensure you'll receive your earned commissions!The best tools used to express express agency are the1. listing agreement2. buyer-representation agreement agency relationshipis created when one party (principal/client) authorizes another (agent/broker) to act on their behalf and in their best interests; mutual agreement.The two essential components for the creation of an agency are consent and control. True or False?

TRUE express authoritygiven by a principal to an agent to carry out specific tasks agency by estoppelis a legal term that refers to someone giving the impression to a layperson that they are an agent of another individual or company. This agency is not officially appointed and the agent by estoppel is not authorized to represent the person or company they purport themselves to be working for.