What is an example of implied agency? For example, an agent receives a call on the sign in the

Law of Agency Chapter 7: Types of Agency Flashcards

What is an example of implied agency?For example, an agent receives a call on the sign in the yard of one of his listings, and the caller wants to look at the property. The agent shows the caller the property and offers to show them other properties in the neighborhood as well.What is an example of gratuitous agency? An agent offering a free CMA. Although this is free the agent is responsible for the "free advice" if the person later sold the property based on the CMA and the CMA suggested price was too low.What level is agency always created at?Agency is always created at the broker level.Why is an agent always responsible for what he says?Because an agent is considered to be an expert in real estate, he is always responsible for what he says, even if he is not receiving a commission.What happens when a broker represents a client as a special agent?The broker is only authorized to perform one act which is to find a buyer who is RWA to purchase property, if he is representing the seller.In the case that the broker represents a buyer, he can only find the buyer a property to buy.When a broker acts as a general agent what does he do?A broker acting as a general agent may perform many acts

such as: (LQBCFE)list the property for rent,qualify

tenetsbind the owner to the leasecollect rentfile evictionsetc.What are two agreements that create general agency?Property mgmt. agreement, IC agreementGeneral agency can be created by the property management agreement between the broker and property owner, or the independent contractor agreement between the sponsoring broker and his salesperson.What is implied agency?Implied agency occurs when someone believes the agent has become "their agent" and is representing them as a client.What is an example of express agency?The listing agreement authorizes the broker to put a lockbox on the property and list the property on MLS. The broker has express authority to perform these acts.What are some of the things a salesperson may do in a broker-salesperson relationship?The salesperson is authorized to do many things for the broker. The salesperson may list property in the broker's name and bind the broker to the listing agreement, advertise in the broker's name, work with buyers, and perform many more duties.What is an example of implied authority? For example, the listing agreement does not specifically state that the broker may advertise the property in the company magazine and the local newspaper, but in order

to market the property he has implied authority to do this advertising.What is an example of agency by ratification? For example, the agent writes an offer from a customer on a property that has not yet been listed. The agent presents

the offer to the owner of the property and the owner accepts the offer and sells the property. The owner has ratified the actions of the agent, thus creating agency by ratification.

What else may express agency give the broker? Express agency may also give the broker implied authority What is a universal agent?A universal agent rarely occurs, this is an agent that may perform any acts or transactions the principal may perform.It is often used between an adult child and an elderly parent. The child could do all business and make all decisions for the parent.What is gratuitous agency?Gratuitous agency is free agency What is express agency?Express agency may be created by an oral or written agreement. In this agreement, the duties of the broker are stated.The listing agreement states the acts the broker may perform in order to find a potential buyer.What is a broker acting as a special agent not allowed to do?A broker acting as a special agent is not allowed to bind the client to a contract.I.e. He is not allowed to sign the client's name to an offer, thus accepting the offer on the property and creating a contract.What are two examples of a general agent? A property manager is a general agentThe broker-salesperson relationship is also an example of a general agent If a broker represents a client, then this client is also the client of ___?A person who is represented as a client by a broker is also the client of all of the salespersons the broker sponsors.What two general things may cause a customer to assume he is being represented by an agent, when in truth he is not?Words and actions of the agent may cause a customer to assume he is being represented.What is agency by ratification?Agency by ratification is agency after the fact.What are two agreements that create special agency?Listing agreement, buyer representation agreementSpecial agency can be created with the listing agreement between the broker and seller, or the buyer representation agreement between the broker and buyer.