Agency Law Flashcards

Agency Law Flashcards How is implied agency formed?when the actions of the parties indicate that they have mutually consented to an agency Agent Fred fronts his cousin Norm money to buy a client's house. Shortly after the closing, Agent Fred flips the house and realizes a substantial profit. Agent Fred's actions might

be describe as:

self-dealing.An agency coupled with an interestan agency relationship in which the agent has an interest in the property that is being sold.cannot be revoked by the principal nor terminated if the principal dies Murphy, a buyer (customer), does not know about the leaking basement so he proceeds to make an offer. Should the broker (salesperson) who represents the seller have told Murphy about the defect?Yes, any defects known to the broker should have been disclosed to Murphy.what is ratificationthe adoption or confirmation of an act already performed on behalf of a person without prior's authorization Describe the difference between constructive notice and actual notice.Constructive notice is the legal presumption that information is available and can be obtained through due diligence.Actual notice means that not only is the information available, but someone has been given the information and actually knows it.Universal Agentthe principal empowers the agent to perform any and all actions that may be legally delegated to an agency representative.Special agent(limited or specific) the principal delegates authority to conduct a specific activity, after which the agency relationship terminates eller Joe Needy lists his home for $40,000 and the broker tells the prospective buyer to submit a low offer because the seller is desperate. The buyer offers $38,000 and the seller accepts. Which statement is TRUE about this situation?The broker violated the agency relationship.Agent Mary forgot to complete a sales contract rider. This resulted in a $300 loss for her client. Agent Mary's actions

can be described as:

negligent.Misrepresenting facts to a buyer might result in: a voided contract and loss of commission.What is special about a universal agent? A universal agent has power of attorney.What is a form of implied agency relationship created by the actions of the parties involved rather than by written agreement?Ostensible agency The act of creating an agency relationship in which the principal accepts the conduct of someone who acted

without prior authorization is called what?Ratification

estoppala legal doctrine by which a person is prevented from asserting rights or facts that are inconsistent with a previous position or representation made by act, conduct or silence The principles of an agency relationship include all of these factors except which one?Compensation

An agent is:one who represents and acts for another.

Which of the following duties best describes what an agent owes customers?Fairness, care, and honestyObedience, confidentiality, and accountingDiligence, care, and loyaltyHonesty, diligence, and skill Fairness, care, and honesty Agent Sam told a buyer that the fence line also marked the property line. Agent Sam knew that the property line did not extend to the fence line. Agent Sam's actions are an example of what?Active fraud self-dealingintentional misrepresentation. Occurs when a broker lists the property, decides to buy it for him or herself and then collects the agreed-upon commission.express agencymost common way of creating an agency relationship by a written agreement Define implied agency.An implied agency is formed when the actions of the parties indicate that they have mutually consented to an agency. The persons involved may not have consciously planned to form an agency relationship. However, their actions may unintentionally, inadvertently or accidentally form the relationship.Which of the following is NOT a form of agency?Express agencyImplied agencyClosed agencyOstensible agency Closed agency In most instances, real estate brokerage is based on what type of agency?special agency

An agency relationship:can occur thru implication (what you might say or do)

without a written contract.A person who hires an agent to represent his or her interests is known as what?Principal Which BEST describes the role of a fiduciary? A fiduciary relationship is established when a property manager agrees to represent an owner in leasing the owner's property.Which of the following best defines negligent misrepresentation?Failure to use ordinary or reasonable care in a situation puffingExaggerated or superlative comments or opinions about a properties benefits When a home is listed, what is the minimum which can be created?Special agency Which of the following duties is NOT owed to a customer?Confidentiality

General agentthe principal delegates to the agent ongoing tasks and duties within a particular business or enterprise Which of the following best defines the term procuring cause?Actions that demonstrate the unbroken efforts of an agent that are responsible for the buyer making a decision to complete the saleBeing involved at some point in the transactionScheduling and conducting open house toursEstablishing a marketing plan for the listing Actions that demonstrate the unbroken efforts of an agent that are responsible for the buyer making a decision to complete the sale An agent fails to discover flood marks on the walls in the basement of a property. The agent sells the property, and the buyer later sues the agent for failing to mention the problem. Which statement best describes what can happen in this case?The agent has an exposure to a charge of negligent misrepresentation.Which of the following best describes "agency coupled with an interest?" When a licensee holds interest in a property transaction Which of the following statements best defines agency?The fiduciary relationship between the agent and the principal If a transaction doesn't complete, under what circumstances would the broker still be entitled to a commission?The broker is still entitled to receive the commission if the transaction does not complete due to the seller's default.A contract in which an owner hires a broker to market the

property creates an agency relationship between:

broker and seller.The principal of Notice is sometimes called what? Disclosure Obedience of the agent to the principal means what?The agent must follow those instructions regardless of personal feelings about them, as long as they do not violate the state or federal laws.caveat emptorlet the buyer beware Puffing is best characterized as which of the following?Subjective opinion