General Agency Flashcards

General Agency Flashcards The duties of a transaction broker or facilitator includedisclosing material facts that affect the value of the property to both parties FiduciarySomeone in a position of trust who owes loyalty to another.Single-license dual agencyWhen a single licensee represents both the buyer and the seller in the same transaction.What is a potential legal consequence for a real estate agent who fails to disclose a dual agency?Revocation of real estate license (severe penalty) What is blockbusting?An illegal practice in which licensees or others encourage homeowners to sell because of an influx or expected influx of minorities into the area Express agencyAn agency relationship that's understood and agreed to by the parties. Spoken or written words create express agency.Fiduciary ResponsibilitiesObedience, loyalty, disclosure, confidentiality, accounting, and reasonable skill and care (OLD CAR) A landlord promises to compensate a broker for procuring a tenant, provided the broker is the procuring cause. This is an example of a(n) Open rental listing What is steering?The illegal practice of nudging buyers away or toward a specific area based on the presence or absence of protected class members in the area relative to the buyer Special agent (aka limited agent )1. Specific Act2. Limited Time3. Limited Purpose4. Limited

Authorityex: Broker

General Agent1. Ongoing relationship2. Can speak on behalf of the client

(limits)3. Licensee's actions are binding for the clientex:

Property Manager If an agent has an exclusive listing to sell a property, and it's taken by eminent domain, what is the status of the listing?It may be terminated against the agent's will Net ListingBroker contracts with the seller to receive all net proceeds from a sale above a specified sale price. Net listings are illegal in most jurisdictions because they create a conflict of interest and encourage unethical behavior, such as trying to sell a property for more than its value.Janice wanted to sell her townhome, and her neighbor was considering buying it. She wanted to put it on the market while she waited to find out if her neighbor was going to buy. In order to receive the best possible representation but avoid paying compensation if her neighbor buys the property, which type of listing agreement would best suit Janice's needs?Exclusive agencyWith exclusive agency, the seller retains the right to find a buyer and avoid paying compensation, but the seller's listing will likely receive more attention from the agent than it would with an open listing.

The agency relationship is defined bythe laws of agency, or in some states, by statute Agent Michael is showing his new listing to a buyer who informs him that he has just inherited five million dollars.Michael is now bound by fiduciary duty to disclose the information to the seller In which of the following contact situations would a seller's agent be expected to disclose his agency relationship?The agent answers questions about the client's property for a caller responding to an ad ClientSomeone who's represented by a real estate licensee (and owed certain agency responsibilities).Disclosure of Agency/RepresentationLicensees are required to disclose agency relationships to ensure that relevant parties understand whom the licensee represents.What makes a licensee an independent contractor? 1. Paid a commission vs a salary2. Pay their own taxes3.Broker cannot set your hours4. Broker cannot require trainings5. Broker cannot require a dress code

• Ways Agency Agreements can be Terminated ExpirationCompletion (performance)Force of

lawDestruction of the property or death of the principalMutual agreement CustomerSomeone who's working with a real estate licensee but who isn't represented by that licensee (nor owed the full range of agency responsibilities); the customer may or may not be represented by another licensee.Non-exclusive/open buyer representationAgreements allow the buyer to work with many agents during the home search process. If a buyer enters into an exclusive agreement with a broker, any open agreements are terminated.Sub-agencySub-agent is an extension of the listing agent, thus owing all fiduciary duties to the seller. Not common in today's market; agents representing buyers directly are more common today.They usually help to bring in buyers, but do not represent buyers directly Open listingAgreement allows the seller to work with multiple agents.They don't always result in a listing agent earning a commission, as only the agent who successfully brings a buyer will be paid.What is red lining?Discriminatory practice of denying housing loans and related financial services to certain neighborhoods, often based on the racial or ethnic composition of the residents Whenever substantive communication is made beyond casual conversation An agent is operating as a disclosed dual agent on a transaction. I n this case, the agent, Rex has a reputation in the community for being a bit odd.He listed his ranch for sale and insisted on the low price he's placed on it, though his agent told him it's underpriced.Rex's distant family hears of the potential sale, and they go through the courts to present evidence that Rex isn't legally competent to manage his business affairs; the judge

agrees. What's the status of the listing agreement?The listing agreement is terminated by force of law.Because Rex has been deemed incompetent by the court, the listing agreement terminates by force of law.A subagent is the agent ofthe client and customer's agents Designated BrokerOne who supervises all activities of sales agents and associate brokers and is liable for their actions. They can

also own their on brokerage firm and not supervise anyone.