National Real Estate Exam: Agency Flashcards

National Real Estate Exam: Agency Flashcards

Hired by sellers agent to act as the seller's agent.dual agent the communication of a fact that was believed or known to be false

a person can collect damages on basis of fraud if:

agency by lawestoppel prohibit anticompetitive conduct, whether by two or more separate entities participating in a common scheme or plan intended to unreasonably restrain trade or by a single entity attempting to create a monopoly price-fixing

• exercise reasonable skill and care- deal honestly and in

good faith- disclose all existing material facts- account for money and property fiduciary responsibilities agency relationshipAgent owes loyalty in relationship. Written agreement not required to create agency relationship.given orally or in writing or by ratifying conduct of principal.Empowers agent to find a purchaser.implied authority authority either express or implied by principal express authority when a person accidentally creates or assumes legal liabilities as an agent by acting in a manner that implies he is an agent.actual authority an exaggeration and an opinion not to be taken as factual.Not considered a misrepresentation unless made with intent to deceive.innocent misprepresenation

• expiration of term- death of either party- insanity of either

party- bankruptcy- change in law- change in circumstances- agency impossible or impractical- agent going out of business- destruction of subject matter- material change affecting subject matter- events making it impossible to sell property at the price or for purpose intended.Termination by acts of the parties communication of a fact reasonably believed to be true or reasonably believed not to be false, but that was in fact false negligent misrepresentation Defects not readily observable.- Agent still has a duty to disclose this information to client.affiliated licensee agency relationships may be created 6 ways 1. express agreement2. ratification3. necessity4. law5.estoppel6. implication the communication of a fact believed to be true but made without reasonable grounds for the belief, and that was in fact false.fraudulent misrepresentation a fact that substantially adversely affects the value of a property or a party's ability to perform his obligations in a

transaction or operates to materially impair or defeat the purpose of the transaction Megan's law

express agreementoral or written agreement.means "to stop". Created when court stops a principal from denying that an agency relationship exists, after principal has allowed a person to believe an agency relationship did exist.implication

• loyalty- obedience- reasonable skill/care- accounting-

disclosure- confidentiality commingling special agenthas limited authority to conduct a single transaction for a principal. Confined to a specific task.statement (oral or written) that was material to the formation of contract, made contrary to fact, that another person has relied upon to his detriment misrepresentation by omission

• person can prove the statement was regarding a material

fact- individual making the statement knew it was false and made it with intent to deceive- person was justified in relying on statement and acted upon it to his detriment material fact If two or more brokers agreed to refuse to deal with a third broker (perhaps because of his discount fees) in order to force him to change his method of doing business or to drive him out of business tying arrangement

• mutual agreement- performance- revocation by principal-

abandonment by agent- breach of agency duties- agent resignation Sherman Antitrust Act agency by necessityagent authority by necessity is when an agent has expanded authority in an emergency, including the power to disobey instructions where it is clearly in the interests of the principal and where there is no time to obtain instructions from the principal.power of attorneyauthorizes a person to act as an attorney in face and sign on behalf of principal.Statute of Fraudsrequires that an agency agreement employing an agent to sell or purchase real estate for compensation be in writing works for both seller and buyer.Must have an agreement in writing signed by both parties non-agent illegal act of the misuse or misappropriation of a principal's funds, whether for one's own benefit or the benefit of others obligations of agent to third party when a person has a duty to state a fact in order to prevent another person from acting to his detriment and fails to do so.puffing licensee who acts as facilitator in a transaction, rather than agent, and does not owe fiduciary duties to any party.non-agent duties universal agentauthorized to perform all acts that can be delegated to a representative, including power to sign contracts and other docs for principal.

created by estoppel. Authority that principal has led other to believe the agent possesses authority when there had been no actual authority granted.subagent ratificationauthority given after an act has already been performed.agents of the brokers.cooperative transaction vicarious liabilityIf a principal has the same knowledge as his agent, he then would have liability for the agent's acts.an agreement to sell on product only on condition that buyer also purchases a different, or tied, product.list-back agreement imputed knowledgeprincipal has same knowledge or notice of facts known by his agent or subagent and the agent is considered to have same knowledge or notice that subagents have general agentauthorized to conduct series of transaction of a continuing nature in a broad, but specified, range of business matters for principal.fiduciary relationshipWhen a person acts on behalf of another in business and legal dealings with others. A special relationship of trust, confidence, or responsibility in certain obligations to others.authority an agent reasonably needs to perform the duties given by express authority.apparent authority listing broker is paid the commission promised by the seller, regardless of who sells the property. The listing broker then pays a portion to the listing agent and another portion to the selling broker, if he has agreed to cooperate with the selling broker. The selling broker then pays a portion to the selling agent.Termination of agency agreement by operation of law.When an agent agrees to directly or through their trade associations to fix or stabilize their fees or commission rates, whether formally, informally or even innocently.group boycott illegal act of mixing of a licensee's funds in the same account, whether in the principals' trust account or in the agent's personal account, with funds belonging to principals.conversion

• reasonable skill/care- honesty and good faith- disclosuremisrepresentation by commission

provides that information about convicted sex offenders can be released to the public. This makes it so agents and sellers are not responsible to disclose such info.latent